![\"An](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598271_718_-S3840x2560-FPNG.png\"\/)
The lobby of the 1921-built Don Lee Building at 1000 Van Ness Ave. | Source: Constanza Hevia H. for The Standard<\/p>\n
The historic building\u2019s turbulence reflects the street\u2019s struggles. A 20-year transit project that cost hundreds of millions of dollars<\/a> debuted in 2022, but the corridor has remained riddled with empty storefronts<\/a>, homelessness, and scenes of misery<\/a>. The Don Lee Building\u2019s uneven resurgence mirrors Van Ness\u2019s broader challenges, worsened by the pandemic.<\/p>\n City planners had once hoped that a revitalized Van Ness \u2014 anchored by large, activated commercial buildings like this one \u2014 could help stabilize the area. Its ongoing turmoil instead highlights how fragile San Francisco\u2019s recovery remains.<\/p>\n Korean theater chain CGV was meant to usher in the revival of 1000 Van Ness. After long-time tenant AMC departed (opens in new tab)<\/a> in 2019, CGV poured about $14 million into renovations, according to Variety (opens in new tab)<\/a>. But by the time CGV opened in 2021, Covid had wrecked the theater business, and it struggled to pay rent (opens in new tab)<\/a>.<\/p>\n CGV sought to end its long-term lease early and agreed to buy the building from owner Site Centers for $28 million and quietly resell it to 1000 Van Ness LP to avoid publicity. (A related lawsuit over a \u201csuccess fee\u201d for the bankruptcy firm that brokered the deal settled in October (opens in new tab)<\/a>.)<\/p>\n The collapse of CGV\u2019s splashy revival plan didn\u2019t just weaken 1000 Van Ness \u2014 it stalled momentum on a corridor that had banked on major destinations to draw people back.<\/p>\n Both Van Ness Ave and the Don Lee Building continue to limp along, as the time and price of revival snowball. Still, Kilpatrick has painted the process as an expected cost of doing business, characterizing the raft of litigation as ordinary \u201cgrowing pains\u201d that come with rehabbing distressed real estate.<\/p>\n He noted that the property is divided into three parcels \u2014 the commercial building, a parking lot, and a condo complex \u2014 making decisions and approvals complicated. And he described the lawsuits from the owners of the cafe and gym as being driven by tenant inexperience.<\/p>\n A brewing conflict <\/p>\n In the summer of 2024, Rebecca Fox moved from Kansas to San Francisco with the dream of opening a showroom for Brew Grind Water (opens in new tab)<\/a>, her high-end coffee equipment company, paired with a caf\u00e9. Real estate brokerage NAI (opens in new tab)<\/a>, where Kilpatrick is president, showed her the 1000 Van Ness lobby space, and she fell in love, signing a lease and opening Emerald Lounge in April.\u00a0<\/p>\n Fox alleges in her lawsuit (opens in new tab)<\/a> that NAI failed to disclose Kilpatrick\u2019s ownership stake in the building and that several stipulations discussed in her letter of intent were missing from the final lease. She\u2019s seeking \u201cno less than\u201d $100,000 in damages, alleging breach of fiduciary duty, constructive fraud, and concealment.<\/p>\n While Kilpatrick admits the brokerage team\u2019s failure to disclose his ownership in writing, he disputes that the omission would have made any financial difference for Fox and says many terms changed before the lease was finalized.<\/p>\n Emerald Lounge remains open, decked out with ornate furniture and serving lavender white mochas and strawberry basil sodas, but Fox has not launched the Brew Grind Water showroom. She blames hostility from management and unfinished building improvements, including plumbing and power upgrades, for her inability to open the showroom, which she was relying on to drive revenue.\u00a0<\/p>\n \u201cDespite investing everything I have \u2014 emotionally, financially, and physically \u2014 in this business, we\u2019ve faced continuous obstacles from the building\u2019s ownership,\u201d Fox said.<\/p>\n Her situation resembles the struggles faced by many small business owners trying to gain a foothold in a city where commercial recovery remains uneven and often dependent on cooperation from landlords.<\/p>\n Since filing the lawsuit, Fox has also accused Kilpatrick of stealing a sandwich board she\u2019d put on the sidewalk and tearing down ICE crisis hotline posters<\/a> she\u2019d taped on the building\u2019s front window. Kilpatrick denies tearing down posters and says management removed a sign after warning Fox that it required prior approval.<\/p>\n She\u2019s been withholding rent in protest of \u201cpromised building improvements [that] were never delivered\u201d and fears she may be on the brink of eviction. Kilpatrick argues that the building has met its obligations, and that Fox is responsible for spearheading any remaining work.<\/p>\n \u201cWe just wish she would pay rent,\u201d Kilpatrick said. \u201cWe don\u2019t want to kick her out.\u201d\u00a0<\/p>\n Fox said she has \u201cdone more to stabilize this property and protect the neighborhood than its landlord has ever shown interest in doing.\u201d She claims the building\u2019s security failed to protect her staff from people wandering in off the street while in mental health crises, resulting in theft and an incident in which she was punched (opens in new tab)<\/a>.<\/p>\n Kilpatrick acknowledged issues with the security team but said hiring a new one would require approval from all three parcels, which are also in conflict.\u00a0<\/p>\n The gym that didn\u2019t work out <\/p>\n The Grand Athletic Club never opened despite signing a lease in December, and its owners, Kris and Kelsey Morton, have sparred with the building and Kilpatrick over who is to blame for renovations that were not completed.<\/p>\n The Mortons allege in their complaint (opens in new tab)<\/a> that 1000 Van Ness LP failed to complete the work it was responsible for and is holding more than $100,000 worth of their gym equipment hostage. They\u2019re seeking nearly $3 million in damages.\u00a0<\/p>\n Kilpatrick said his team made all required repairs, and certain fixes were the gym\u2019s responsibility. \u201cThere\u2019s lots of stuff that was on the landlord. We did all that stuff,\u201d he said. \u201cThere\u2019s lots of stuff that\u2019s on the tenant.\u201d He argued that 1000 Van Ness LP legally took possession of the gym equipment as security collateral.\u00a0<\/p>\n \u201cThey had heart, and they were in it to win it; they just didn\u2019t have the expertise,\u201d Kilpatrick said. \u201cIf I were a billionaire, I would say, \u2018You guys gave it a shot. It\u2019s OK. Here\u2019s your deposit back.\u2019 That being said, there is a loan on the property. If I were going to donate money, it would probably be to an animal or an immigrant.\u201d\u00a0<\/p>\n The Mortons say the project failed due to the building\u2019s condition and reject Kilpatrick\u2019s portrayal of them as inexperienced or overwhelmed.<\/p>\n \u201cOpening this gym was our dream, and we poured significant time and financial resources into the space,\u201d they said in a statement. \u201cBut, as outlined in our filed complaint, Mr. Kilpatrick\u2019s refusal to complete what was required under the lease made that impossible.\u201d<\/p>\n A building full of finger-pointing<\/p>\n The disputes go beyond the newest tenants. A lawsuit filed in November by 5910 Investments, owner of the parking garage at 1000 Van Ness Ave., remains active and has resulted in a court-appointed receiver overseeing the building\u2019s management.<\/p>\n 5910 Investments (opens in new tab)<\/a> accuses the building owner and Lakeside Investment Company, owned by Kilpatrick, of \u201cmultiple breaches,\u201d including mishandling money, failing to provide financial records, and not procuring required insurance. Like Fox, 5910 Investments accuses Kilpatrick of misrepresenting his relationship to various business entities.<\/p>\n In March, 1000 Van Ness LP countersued, (opens in new tab)<\/a> claiming the parking lot owner neglected basic maintenance, resulting in a garage that\u2019s \u201cdirty and dilapidated,\u201d and accused it of selling more monthly parking passes than it was authorized to.<\/p>\n In a recent report, (opens in new tab)<\/a> the court-appointed receiver, Michael Kasolas, noted the need for extensive repairs: \u201cThe current and previous building owners have deferred much-needed maintenance and have not reserved any meaningful funds for such repairs,\u201d Kasolas wrote. \u201cThe fighting among the current owners has sapped resources that should be used to fund building operations and repairs. While the receivership estate currently has sufficient operational funds to carry out its activities at present, that will not be the case indefinitely.\u201d\u00a0<\/p>\n A lawyer for 5910 Investments did not respond to a request for comment.\u00a0<\/p>\n Kilpatrick described the issues with the parking lot\u00a0and the building maintenance as \u201cdrama\u201d that was brewing before he became involved with 1000 Van Ness.\u00a0<\/p>\n \u201cWe had a feeling that this building is amazing and we are getting into a hornet\u2019s nest,\u201d he said. \u201cDo I regret it? No, it\u2019s a beautiful building. I think I still would have bought it.\u201d\u00a0<\/p>\n Another outstanding lawsuit, filed in December (opens in new tab)<\/a> by financial services firm Acrisure, claims that Kilpatrick and 1000 Van Ness LP refused to pay for a property insurance policy that Acrisure secured on their behalf. The firm is seeking $250,000 in damages.\u00a0<\/p>\n Kilpatrick tied the issue back to disagreements within the building, saying the parking lot and condo owners refused to approve the insurance package, despite his objections.\u00a0<\/p>\n The infighting highlights a broader pattern in older San Francisco commercial properties, where fragmented ownership and years of deferred repairs have made coordinated recovery efforts painfully slow.<\/p>\n Kilpatrick has had previous legal troubles. He settled a $1 million lawsuit (opens in new tab)<\/a> with the city of Oakland, which accused his company of intentionally gutting a Chinatown apartment to force tenants out. While Kilpatrick describes the situation as \u201cheartbreaking,\u201d he blamed the general contractor for the issues.<\/p>\n There have been several (opens in new tab)<\/a> other (opens in new tab)<\/a> lawsuits (opens in new tab)<\/a> against companies he owned over years, which he said were par for the course for someone handling so many transactions. Kilpatrick has also had his real estate license temporarily suspended twice (opens in new tab)<\/a>, for mishandling money and for continuing to work during his first suspension. Kilpatrick said that while there was a violation, no money was alleged to be lost or missing, and the suspension occurred because he was late paying a fine.\u00a0<\/p>\n Kilpatrick has disputed previous reporting that he acquired 1000 Van Ness Ave. \u201cvirtually for free\u201d but acknowledges getting a favorable deal. While he previously said he expected the property to be fully occupied by the end of 2025, he now admits this is unlikely.\u00a0<\/p>\n While it hosts Ike\u2019s Love & Sandwiches and a ghost kitchen called City Smoke House (opens in new tab)<\/a>, three leasable spaces at the Don Lee Building remain empty (opens in new tab)<\/a>. Kilpatrick says several gyms are interested in the space that was to have been The Grand Athletic Club, and a bar and \u201cexperiential amusement center\u201d are in discussions for other units. His new goal is to be fully\u00a0 occupied by the end of 2026.<\/p>\n Kilpatrick said Apple Cinemas is \u201cdoing great\u201d despite operational issues. The movie theater has made no public complaints against the building\u2019s owners, (opens in new tab)<\/a>though it\u2019s dealing with its own legal headache, as tech company Apple (opens in new tab)<\/a> has sued it for trademark infringement.\u00a0<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598273_976_-S3840x2560-FPNG.png\"\/)
Barista Julius Moridis prepares a matcha latte. | Source: Constanza Hevia H. for The Standard![\"A](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598274_368_-S3840x2560-FPNG.png\"\/)
The Emerald Lounge is locked in a dispute with the building\u2019s owner. | Source: Constanza Hevia H. for The Standard<\/p>\n![\"An](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598275_129_-S3840x2560-FPNG.png\"\/)
Because The Grand Athletic Club never opened, the building is showing the space to prospective tenants. | Source: Constanza Hevia H. for The Standard![\"A](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598276_617_-S3840x2560-FPNG.png\"\/)
The gym alleges that the building has no right to hold its equipment, which is says is worth more than $100,000. | Source: Constanza Hevia H. for The Standard<\/p>\n![\"Five](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598278_126_-S3840x2560-FPNG.png\"\/)
A lawsuit filed by the owner of the parking lot has resulted in a court-appointed receiver overseeing the building\u2019s management. | Source: Constanza Hevia H. for The Standard![\"An](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598279_882_-S3840x2560-FPNG.png\"\/)
1000 Van Ness LP claims the parking lot owner neglected basic maintenance, resulting in a garage that\u2019s \u201cdirty and dilapidated.\u201d | Source: Constanza Hevia H. for The Standard<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598280_50_-S3840x2560-FPNG.png\"\/)
A Department of Building Inspection job card is taped to the building\u2019s worn exterior. | Source: Constanza Hevia H. for The StandardA checkered track record <\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/-S3840x5757-FPNG.png\"\/)
Signs advertising retail space available for lease hang in the windows. | Source: Morgan Ellis\/The Standard<\/p>\n
![\"A](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598283_67_-S3840x2560-FPNG.png\"\/)
Apple Cinemas is still ramping up its self-serve concessions. | Source: Constanza Hevia H. for The Standard![\"Rows](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1764598284_272_-S3840x2560-FPNG.png\"\/)
It\u2019s also working to attract consistent business. | Source: Constanza Hevia H. for The Standard<\/p>\n