Nancy Pelosi Bets on San Francisco Commercial Real Estate Amid Market Challenges

Photo byJesse Rogala

While many investors shy away from San Francisco's struggling commercial real estate market, Speaker Emerita Nancy Pelosi is taking a bold step forward. Recent financial disclosures reveal that she and her husband, Paul Pelosi, are expanding their portfolio in this beleaguered sector, signaling confidence in a potential market turnaround.

On September 11, Pelosi certified a filing indicating that Paul invested between $250,000 and $500,000 in a partnership acquiring a Class B office building at 631 Howard St. in SoMa. This five-story property was purchased for $36.4 million by a collaboration involving businessman Greg Flynn and San Francisco’s Ellis Partners.

Last year, Paul Pelosi invested between $500,000 and $1 million in another of Flynn’s projects: an LLC dedicated to acquiring and renovating the historic Huntington Hotel, a luxury establishment in Nob Hill that is set to reopen in 2025 after extensive renovations.

These investments come at a time when traditional lenders have retreated from financing commercial deals in San Francisco, creating a vacuum that wealthier individuals like the Pelosis are filling. “The investment markets are still out on San Francisco properties,” noted a knowledgeable real estate broker. “Normally, Flynn would have partnered with a capital partner and a bank, but these days, you cobble together what you can.”

Nancy Pelosi’s financial disclosures indicate these assets are owned by Paul Pelosi, whose savvy investment strategies have often garnered public attention, particularly in the tech sector with well-timed trades in companies like Nvidia and Microsoft.

In addition to their commercial ventures, the Pelosis own a range of properties, including a Walgreens in the Presidio area valued at $5.8 million, generating substantial rental income. Their holdings extend beyond the city, featuring a Napa Valley vineyard and the luxury Auberge du Soleil resort in Rutherford.

With the Federal Reserve recently cutting interest rates for the first time in over four years, there may be renewed investment activity in the commercial sector. This could present new opportunities for those willing to navigate the current landscape, and the Pelosis appear ready to lead the charge.