You Can’t Buy Pelosi’s New Office Tower Stake. These 2 Stocks Are the Closest Thing
Nancy Pelosi just bought into a private San Francisco office tower you cannot touch, but two beaten-down public REITs give ordinary investors a way to bet on the same recovery without needing a congressional salary.
A periodic transaction report filed on October 2, 2026, for Rep. Nancy Pelosi reveals a September 8 purchase of an interest in REOF XXX, LLC. The purchase falls in the $500,001 to $1,000,000 range and is listed under the spouse owner code. The LLC owns an office tower on Bush Street in San Francisco, and because it is private, you cannot buy into it.
Trade analysts have matched the filing with Hudson Pacific Properties (NYSE:HPP) and Kilroy Realty (NYSE:KRC). Both own diversified West Coast portfolios carried at their original cost, and neither includes the Bush Street tower.
Flynn Paid Roughly $221 Million for a $350 Million Loan
Flynn Properties bought the $350 million loan on 225 Bush Street for roughly $221 million. It then took over the 585,450-square-foot tower through a deed in lieu of foreclosure. That deal closed September 24, 2026, at about $377 per square foot.
Morningstar valued the 22-story building. It opened in 1922 as the headquarters of Standard Oil Company and was valued at $589 million when the loan was made before the pandemic, $153 million a year ago, and $228 million now. The prior owner, Kylli, is a subsidiary of China’s Genzon Group. It defaulted after it failed to repay the loan when it came due in November 2024.
“It was an attractive valuation, and we know this building like the back of our hands,” Greg Flynn said. The tower is only 55% occupied. Buying a loan below face value turns into ownership. No public REIT can match that cost on buildings it already owns.
Hudson Pacific Is the Concentrated, Leveraged Proxy
Hudson Pacific’s supplemental report for June 30, 2026 shows 22 of 38 in-service office properties in the Bay Area. By square footage and rent totals, the region accounts for 59.3% of the company’s office space and 63.7% of its annualized base rent. The Bay Area offices were 79.2% occupied, below the portfolio average of 82.5%. San Francisco properties did better, at 92.2%.
Hudson Pacific pays no dividend and has a $572.09 million net loss over the trailing year. The shares trade at $12.17, well below the $19.46 high of the past year. At 0.28 times book value and 3 times funds from operations, the stock needs two things to work. Occupancy has to reach the mid-80% range. Asset sales have to bring down net debt, which stands at 11.2x cash-adjusted EBITDAre.
Kilroy Pays You $2.16 a Share to Wait
Kilroy, valued at $4.09 billion, pays $2.16 a share per year, a 6.21% yield. Unusual Whales puts the company’s Bay Area share at about 38%. However, chief executive Angela Aman said in September, “About half of the portfolio is actually in the San Francisco Bay Area.”
Angela Aman also counted 31 tenants looking for space above 100,000 sq ft. Over the past year, Kilroy shares fell 6.22%, while Hudson Pacific fell 30.68%.
Bay Area Office Stocks Face a Leasing Test Before Earnings
The bull case is that AI companies are leasing the few large blocks left while buyers come back to Bay Area office deals. The bear case is that rents are still under pressure. Hudson Pacific’s cash rents on new leases fell 11.4% last quarter, and Kilroy’s occupancy was 77%.
Kilroy looks better positioned. Its $1.6 billion of available cash and credit, along with the dividend, pays you while San Francisco recovers. Hudson Pacific offers more upside if leasing keeps improving, but it carries a greater risk of deep losses and currently provides no income for shareholders who rely on regular payouts.
Kilroy is expected to report on October 22, and Hudson Pacific on November 5. Neither company has confirmed its date.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
