Downtown San Antonio Tex-Mex spot Luz Roja has gone dark as owner Devin Elder faces mounting legal troubles. The developer has closed his first restaurant at 419 N. St. Mary’s St. less than a year after reviving the former Blanco Cafe space.
The seven-month-old restaurant did not make a formal announcement, only changing its Instagram bio to “permanently closed.” The account has been inactive since September, when it was advertising a $12 taco special.
Elder, the former principal of DJE Texas Management Group, opened Luz Roja on March 10, but it wasn’t long before he became entangled in legal and financial controversies. In April, DJE reportedly laid off the majority of its staff and was looking to sell off most of its apartment properties, according to the San Antonio Business Journal.
By June, several outlets reported that DJE was under FBI investigation for alleged wire fraud and money laundering. Court records also show Elder is named in several investor lawsuits pending in Bexar County District Courts. County filings also show a $69,000 claim from local contractor Hermes Group.
Luz Roja was touted as an elevated Tex-Mex experience. Although standards like nachos were on the menu, there was also a lighter influence in dishes like a shrimp relleno stuffed with corn and veggie enchiladas with zucchini, mushrooms, and poblano peppers.
At the time, Luz Roja was envisioned as the latest evolution of “Downtown West,” the area surrounding Legacy Park. City planners and developers are working to shift the area away from its nine-to-five business roots into a vibrant mixed-use neighborhood with nightlife, dining, and residential options.
“As a downtown developer, I am excited to bring new local concepts to downtown,” Elder said in the original press release. “Luz Roja aims to support the revitalization of the North St. Mary’s block, bringing new energy to San Antonio’s Downtown West neighborhood.”