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‘Cursed’: Why this prime lot with approved housing isn’t getting built

The owners of 2050 Van Ness Ave., which was home to 17 restaurants over 30 years, say their housing project is “impossible to build."

A city street view through a circular window, showing people walking, cars, and posters on a building. Traffic lights and trees are visible under a clear sky.
The building at 2050 Van Ness Ave. has been vacant for almost eight years. | Source: Morgan Ellis/The Standard

The odds were stacked against Roger Lwin when he set out to open yet another restaurant in a Polk Gulch building where they were known to die. Sixteen eateries had come and gone in just three decades. Neighbors said the building was “cursed.”

Winking at the site’s notorious reputation, Lwin opened Hex Bar & Kitchen in 2015. But his restaurant, too, fell prey to the curse — and it only grew stronger after Hex shut its doors in 2017.

Despite its prime location near bustling Polk Street and just one block from the legendary House of Prime Rib, the building at 2050 Van Ness Ave. has sat vacant for almost eight years. The owners of the corner lot have wanted to demolish the building and an adjacent property at 1675 Pacific Ave., a former auto shop, to make way for dozens of apartments and retail space. But they say the economy is crushing those dreams.

A purple building with arched windows sits on a street. In front, there's a silver car and a bus stop with a person seated under a red roof.
Plans to demolish a former auto shop at 1675 Pacific Ave. and the adjacent building for new housing have stalled. | Source: Morgan Ellis/The Standard

In the meantime, the sad structure rots on a bustling thoroughfare, attracting squatters and graffiti.

“It’s a bad look,” said Joseph Hiseley, assistant manager of Harris’ Restaurant, an upscale steakhouse across the street.

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Plans approved by the city in 2019 proposed a seven-story mixed-use building with 874 square feet of ground-floor retail, 63 apartments, an 850-square-foot rooftop deck, and a courtyard. The project also included basement parking for 24 cars and 70 bikes.

The two buildings and the land they sit on are owned by 2050 Van Ness LLC, which purchased them in September 2009. 

Zesara Chan, an officer for the LLC, blames the “challenging financial landscape” for scuttling the proposal and said the firm is “considering next moves for the property.” She declined to comment further. 

A person walks past a building with black shutters and multiple posters of the same image plastered on its wall. An American flag is seen in the background.
Plans approved by the city in 2019 proposed a seven-story mixed-use building with 63 apartments. | Source: Morgan Ellis/The Standard

Co-owner Eugene Chan, her cousin, said they haven’t broken ground because of the high cost of construction loans. Most banks lend at an 8.5% interest rate, according to a vice president at Fremont Bank, which frequently underwrites construction loans. The executive, who wasn’t authorized to speak with the media, said rates differ depending on the borrower’s liquidity, net worth, and experience building projects.

“It’s impossible to build,” Eugene Chan said.

He said they may sell, adding that either way, the land should be developed. “We need more housing on the north side,” he said.

The owners haven’t had any success leasing out the former auto body shop. Still, Eugene is optimistic they’ll be able to do so. The former restaurant, however, is too far gone, he said, noting that the kitchen would need “extensive remodeling.”

Supervisor Danny Sauter, whose district includes the neighborhood, said in an email that his office has had no contact or briefings on the site from the Planning Department or the LLC.

‘It was cursed’

When asked about plans to raze the buildings, neighbors frequently brought up the string of failed restaurants.

“They were all great,” said House of Prime Rib manager Steve Betz, who has worked at the legendary steakhouse for more than three decades.

A waiter who didn’t share his name noted the turnover of businesses at the building.

A woman in a long gray coat walks past a wall plastered with posters. Pigeons feed on the sidewalk, and a restaurant with green awnings is in the background.
When asked about plans to raze the buildings, neighbors frequently brought up the string of failed restaurants. | Source: Morgan Ellis/The Standard

“It was a new place like every three years,” he said while adding names to a waitlist for tables as hopeful diners lined up. “It was like it was cursed.”

Asked what should be built there, if anything, Betz said the area could use more parking.

“It’s needed,” he said. “Especially with the meters here, it’s a fortune.”

Whatever happens to the building, neighbors want to see something done fast. Hiseley said police have had to move squatters out of the building at least three times in the last five years. “There were break-ins, people living there, and they don’t maintain it well,” he said.

A man in a gray suit with a geometric tie stands indoors, looking out a window. Green plants are nearby, and the room has warm, dark tones.
Joseph Hiseley, assistant manager at Harris’ Restaurant, says squatters have taken over a former restaurant across the street at least three times. | Source: Morgan Ellis/The Standard

Eugene Chan acknowledged that they’ve had issues with squatters leaving trash and crack pipes in the building. The San Francisco Police Department did not respond to a request for comment.

Dolla Chao, 36, a clerk at the nearby Happy Donuts, said a pharmacy would be a good option for the property. He said customers miss the CVS that used to be across the street from the doughnut shop.

“Housing is OK, but we need more retail,” Chao said.