Venture capitalist Neil Mehta's companies bought multiple Pacific Heights buildings including the vacant Clay Theater. Current tenants say they're being pushed out to make room for upscale retailers, though the buyer denies it. Mayoral candidate Aaron Peskin introduced legislation to help local businesses stay.
A battle is brewing with the San Francisco venture capitalist over several buildings in Pacific Heights. Companies tied to venture capitalist Neil Mehta bought a string of buildings along Fillmore Street, including the shuttered Clay Theater, for tens of millions of dollars in an attempt to revitalize the area. But existing business owners in these buildings are claiming that they're being wrongfully pushed out by the sellers and the new owners in an attempt to bring in new higher-end establishments. In response, mayoral candidate Aaron Peskin has introduced legislation that is supposed to boost bargaining power of certain of these local businesses to help them stay in place. A spokesman for the buyer responded that they've never tried to increase rent on any of the existing tenants, have not encouraged the sellers to evict tenants so that they could bring in new tenants and raise the rent that way. They also claim they intend to bring in new small businesses, not like chain or big retail, formula retail businesses. The reality is several of the tenants have just been on month-to-month leases, and there is nothing wrong with terminating them. We'll have to see what new businesses are eventually brought in and how the new legislation impacts the owner's plans. Follow me for more Bay Area real estate.
