Nuveen Closes Beverly Hills’ Largest Deal in 5 Years
The Mateen Brothers have bought the mixed-use Wilshire Rodeo Plaza from Nuveen for $211 million. This is the largest property transaction in Beverly Hills, Calif., since 2019, according to The Wall Street Journal. Tinder founder Justin Mateen and his brother Tyler Mateen joined brother-in-law Pouya Abdi to purchase the Class A office and retail asset. JP Morgan provided acquisition financing, with Quantum Capital Partners advising on debt for the buyers.
The 300,000-square-foot office and retail property, located at 9536 Wilshire Blvd. and 131 S. Rodeo Drive, spans an entire city block and includes three six-story office and retail buildings along Wilshire Boulevard, between Rodeo and Camden drives, as well as a three-story office building along Rodeo Drive. The Mateens plan to rebrand the iconic Golden Triangle business center as “One Rodeo.”
All bets on luxury retail in Beverly Hills
The new ownership plans to nearly double the high-street retail space and spend around “the low tens of millions” to enhance the buildings, shift from short-term leases to long-term, and are considering different uses for the office space and the rooftop, such as a hotel or a members-only social club, the brothers told Commercial Property Executive. However, the repositioning is targeting luxury retail and office tenants alike.
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Office properties in Beverly Hills have held up a bit better than the overall Los Angeles market, where vacancy topped 24.4 percent this year, according to Cushman & Wakefield. Still, more than a fifth of Beverly Hills office space was vacant as of the second quarter, up from 11.2 percent at the same time in 2019, The Wall Street Journal reported. Retail, meanwhile, has an occupancy rate well north of 90 percent.
Current tenants at the property include Merrill Lynch/Bank of America and UBS, as well as entertainment companies William Morris Endeavor and Encore Recordings. The Golden Triangle is a renowned tourist destination, a prime retail corridor also known for its top-tier offices, high-end hotels and fine dining.
Late last year, in another noteworthy deal involving Beverly Hills office, Skanska cashed in roughly $71 million for a brand new, 50,148-square-foot asset.
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