The couple got engaged Tuesday night surrounded by friends and family, including Frankie and Ariana Grande's mother Joan, PEOPLE can exclusively reveal. "We are so happy," says Frankie

Frankie Grande and Hale Leon are engaged!

The Broadway star and activist, 38, surprised Leon, 28, an actor, with an elaborate VR proposal on Tuesday night in Los Angeles surrounded by close friends and family, PEOPLE can exclusively reveal.

Grande, who will be celebrating his four-year sober anniversary June 16, initially told Leon they were meeting up with friends to celebrate his sober anniversary a few days early, and then surprised the actor with the proposal.

Grande popped the question at the site of one of the couple's memorable first dates -- Dreamscape, an immersive VR adventure venue in Los Angeles. The Rainbowthon host worked with the company to create a custom ending to the couple's VR experience, complete with a "Will you marry me?" message and intergalactic virtual fireworks.

"It was such a perfect, beautiful moment," Grande tells PEOPLE. "Hale was completely surprised and we both started crying tears of joy. I have been working on proposing to him in virtual reality for over a year and it was ABSOLUTELY breathtaking for us both."

Frankie Grande and Hale Leon engagement shoot
Credit: Todd Danforth Photography
Frankie Grande and Hale Leon engagement shoot
Credit: Todd Danforth Photography

"I can't wait for everyone to see the video! Omg! We are so happy!" he adds.

In attendance were the couple's closest family and friends, including Grande's mother Joan and Leon's aunt Carolyn.

The couple met in 2019 at a line dancing bar in Los Angeles, which Grande playfully referred to as "love at first dance."

"I randomly ended up going to this bar Oil Can Harry's in the Valley and I saw Hale he was dancing on the stage," Grande recalled to PEOPLE shortly after they started dating. "He was performing for everybody. He loves to go to Oil Can Harry's he knew all the dances, I was blown away."

Frankie Grande and Hale Leon engagement shoot
Credit: Todd Danforth Photography

"It was definitely love at first dance," he added. "I chased him down to meet him afterwards but he disappeared to fix his hair."

Listen below to our daily podcast PEOPLE Every Day for more on Frankie Grande's engagement to Hale Leon.

Grande said that everyone in his family loves Leon, especially his grandmother who can be tough to impress.

"Nonna really loved him and paraded him around her retirement home, [showing us off] as the new hip gay couple visiting," he said. "It was so cool, I didn't know if they would be hip to that, but it was really adorable."

The couple recently celebrated their two-year anniversary with a series of sweet posts on social media and a trip to Palm Springs.

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"Babe, if we can survive quarantine... we can survive anything! 💇🏼‍♂️" Grande wrote along with several photos of the couple on Instagram. "Happy 2 year anniversary my love. 👨‍❤️‍💋‍👨Looking forward to so many more laughs and smiles and costumes and hopefully no more haircuts! 🤣 I love you with all my heart! 😘"

Grande's engagement news comes just several weeks after his sister Ariana Grande tied the knot to her partner Dalton Gomez.

"They got married," Grande's rep told PEOPLE then. "It was tiny and intimate — less than 20 people. The room was so happy and full of love. The couple and both families couldn't be happier."