‘A slap in the face’: After 10 years, why is this prime retail storefront still empty?

For a decade, Lombardi Sports has sat empty at the corner of Polk and Jackson streets—a usually bustling area, popular for drinking and dining, amongst several desirable San Francisco neighborhoods.

At a glance, it would appear to be an excellent opportunity for redevelopment. Apartments here would likely be snapped up in no time—average rent for all apartment sizes in nearby Nob Hill is $3,468, according to Zumper—it’s over $4,000 in Pacific Heights just across Van Ness Avenue. 

The space at 1600 Jackson St. has had its fair share of attempts to revitalize it after selling its last pair of running shoes in 2014, including plans for 62 new apartments that the developer backed out of, plans for a Whole Foods that the city shot down and a Target that locals said no to. Mollie Stone’s signed a lease on the property, but that collapsed during the pandemic. In its 10 years of sitting vacant, three firm plans have failed, and two others didn’t make it out of the gates. 

Readers have likely heard similar San Francisco redevelopment stories before, where a myriad of city red tape and the insanely high cost of getting anything built have been at the forefront of political discourse for a good long while now. And the reason Lombardi’s has sat empty is no different: bureaucracy, according to the building owners.

But it’s not for a lack of trying. Owners Rob Isackson and Scott Kepner filed housing plans shortly after buying the former sporting goods store on 1600 Jackson St. but later backed out because it was not financially feasible. 

“We value the property more as commercial long term,” Isackson said. “It would be a fabulous location for a full-service gym. It’s also a great grocery store location.”

But subsequent efforts to fill the building with retailers or grocery stores over the last nine years have faltered.

Owners are open to selling the building for around $25 million, according to leasing agent Matt Holmes.

The owners blame the city’s formula retail ban for getting in the way, especially with plans for a Whole Foods with eight homes above it, which the city’s Planning Commission killed in 2018. Although the ban didn’t apply to Mollie Stone’s lease, it still fell through.

Kepner said the ban makes it more difficult to secure a new tenant because the business cannot have more than 11 locations. The ban was approved by voters in 2007 to "protect San Francisco's vibrant small business sector and create a supportive environment for new small business innovations." 

But the old sports store is probably too big for most small businesses; its two stories are spread over 32,000 square feet, more than half a football field. In short, finding a small business with enough cash to pay the $92,500 monthly rent and fill the huge space is proving to be almost impossible. Rent is priced at $2.50 per square foot. Parking is included for the tenant, Holmes said.

“It’s a difficult needle to thread,” Kepner said. “We’d love to get someone in there if the city will approve.”

Whole Foods was denied in 2018 by the Planning Commission because its plan didn’t include enough housing and there were fears it would damage existing local businesses’ bottom lines. 

“It’s an iconic building,” said Planning Department Chief of Staff Dan Sider. “It’s a shame it’s been empty for so long.”

But after a decade of sidling past an empty shell, local people and businesses are running out of patience.

“It’s an eyesore,” said Kaytea Petro, owner of Gallery-O-Rama, which sits across the street from the vacant building. “They had to board up the entryway stairs with wood because people kept sitting on them and smoking crack.”

Many locals just want something done with the space and prefer housing as the best path forward.

“Housing seems like the best way to go,” said Travis Arenas, who has lived a block away on Jackson Street for three years. “It’s something that will always be needed.”

Rachel Michienzi, a manager at Cheese Plus on the corner of Broadway and Polk, said she wants housing because many of her employees can’t afford to live nearby. The issue stings even more for her because market-rate condos are for sale in the Maison Pacific building across the street from her store, but the condos, which start at $798,000 according to its website, are out of reach for her employees.

“It’s a slap in the face,” said Michienzi, who lives in the city’s Lower Pacific Heights neighborhood and has worked at Cheese Plus for three years. “We can get that luxury housing built, but we can’t get affordable housing built.”

Supervisor Aaron Peskin’s chief of staff, Sunny Angulo, said the supervisor has supported building housing at the former Lombardi Sports store, including housing for families, since his election in 2016. 

“Hopefully, the developer sees an opportunity to reenvision the site not with the failed model of big box chains but real housing for real San Franciscans,” Angulo said in an email.