Hollywood Walk of Fame Retail Sells for $69M

Tinder co-founder Justin Mateen and brother Tyler Mateen have acquired The Hollywood Collection, a 180,000-square-foot retail portfolio on Los Angeles’ Hollywood Walk of Fame, for $69 million. The transaction included the 118,00-square-foot Hollywood Galaxy building at 7021 Hollywood Blvd. and the 64,000-square-foot Petersen Building at 7001 Hollywood Blvd.

Both properties were previously under Federal Realty Investment Trust’s ownership, according to Yardi Research data. The company had acquired them in 1999 for a combined $24.9 million.

Two high-profile retail assets

Completed in 1990, the Target-anchored Hollywood Galaxy is a three-story property with a tenant roster that includes CVS Pharmacy and LA Fitness. The retail center was 80 percent leased at the time of the sale, L.A. Times reports. Adjacent to Hollywood Galaxy is The Petersen Building, which began serving its customers in 1983. Its tenant roster features Marshalls and La La Land, the same source shows.

The retail properties occupy a full city block on the Hollywood Walk of Fame, which attracts 10 million visitors annually. The Hollywood/Highland subway station on B Line is within walking distance, as are Madame Tussaud’s Museum, TCL Chinese Theatre and Dolby Theatre.

Private investors are increasingly returning to the retail real estate sector, drawn by its income stability and long-term growth potential. Market conditions such as easing inflation, stabilizing interest rates and reduced competition are creating a favorable environment for acquisitions. And while institutional buyers are pulling back, high-net-worth individuals and smaller private groups are stepping in to fill the gap.