Neil Mehta, a venture capitalist, recently made headlines for reportedly displacing long-established local restaurants in San Francisco’s Fillmore Street to make way for high-end retailers. However, sources close to Mehta offer a different perspective. They claim that Mehta’s focus is actually on bringing a wealth of restaurants to the area and even planning a “Y Combinator for restaurants.” Mehta envisions creating an oasis where ambitious restaurant owners can afford to set up shop, offering San Franciscans a range of dining and shopping choices while also restoring a historic movie theater on the street.
Mehta’s plans were first reported by The Information, shedding light on his rise as a successful investor. A graduate of the London School of Economics, Mehta established Greenoaks Capital in 2010 after gaining recognition as a star investor for an offshoot of the hedge fund D.E. Shaw. Greenoaks Capital has since invested in several buzzy tech companies, including Stripe, Databricks, Rippling, and Canva, all of which are now valued in the billions of dollars. Mehta’s success has allowed him to invest in his hometown of San Francisco through a $100 million nonprofit, aiming to revitalize the Pacific Heights neighborhood and support aspiring restaurant owners by reducing red tape, providing lower rent, and even charging a percentage of revenue instead of fixed rent in some cases.
Contrary to some criticisms, Mehta’s friends assert that his primary motivation is not financial gain but rather the economic recovery and revitalization of his San Francisco neighborhood after the pandemic. They emphasize that Mehta is a “big believer in cities.” His approach also demonstrates a commitment to independent businesses, as he avoids “formula retailers” with numerous locations worldwide. Moreover, Mehta stands to benefit from recent changes to San Francisco’s planning code, which streamline the permitting process for independent businesses.
While Mehta’s investments may not come cheap, his strategy of purchasing buildings, leasing them at below-market rates, and curating a vibrant mix of businesses is likely to increase the value of his properties over time. Alex Sagues, a senior vice president at CBRE, explains that carefully mapped-out shopping districts can thrive, with businesses complementing each other rather than competing. Additionally, the presence of high-end food establishments is not expected to cannibalize business but instead attract more customers, as people seek specific experiences and appreciate the density of options.
Mehta’s efforts may already be influencing the market, as the average home price in Pacific Heights rose significantly in July. With his vision for Fillmore Street and Pacific Heights, Mehta aims to create a thriving neighborhood that offers a diverse range of culinary and retail experiences while contributing to the economic recovery of San Francisco.
