The messy and complicated drama between Chinatown restaurant China Live and its landlord seems to be resolved in favor of the landlord, but the restaurant might stay put with a bankruptcy restructure, and could even still win in the end.
The celebrated Chinatown restaurant and food court China Live saw some ugly, behind-the-scenes drama spill out in public view when the landlord tried to evict the restaurant over $4.2 million in unpaid back rent back in March of 2023, much of which was even pre-pandemic rent. Then things really hit the fan when the bank foreclosed on the building a year later, sending the 644 Broadway property into receivership, and making it very unclear whether China Live owner George Chen, or the former landlord Cypress Properties, would prevail in this complex dispute.
Well, Cypress Properties has won this round, and China Live’s Chen has been dealt a major setback. The SF Business Times reports that a judge ruled in favor of Cypress Properties, declaring that China Live was liable for $6.7 million in back rent, some of which goes all the way back to 2018. The Chronicle confirmed with Chen that the restaurant intends to file for Chapter 11 bankruptcy, which could allow China Live to stay open and continue operating.
There is certainly plenty of bad blood between Chen and Cypress Properties. But the fact remains that Cypress technically no longer owns the 644 Broadway property, and Cypress blames Chen’s massive back rent bill for their loss of the building.
“After five and a half years, we finally achieved justice in court,” Cypress co-founder Chris Wight told the Business Times after the ruling. “China Live owes all back rent totaling $6.7 million and had the financial means to pay rent but chose not to, which ultimately forced me into default.”
But whether China Live remains at 644 Broadway is no longer a decision in the hands of Wight or Cypress Properties. That decision likely falls on the appointed receiver of the property, Gregg Williams of Trident Pacific (Williams is also managing the defaulted SF Centre, which is still headed for auction).
The Business Times says that Williams is asking the court to render China Live’s lease “terminated and forfeited," which could theoretically allow China Live to just sign a new and much more favorable lease. After all, it’s difficult to imagine there are many tenants the caliber of the well-established China Live who are lining up and waving money around wanting to move in. And Chen actually occupies the upper floors of the building as well, which are home to a banquet space, the cocktail bar Cold Drinks, and the currently closed, upscale Eight Tables. (The basement is home to the Palace Theater, the main base of Boxcar Theatre, which is having some issues of its own.)
Chen thinks he still holds some cards here, or at least how he’s playing it publicly. The Chronicle reported in December that Chen was scouting new locations for China Live, and was even in talks to move to the Financial District’s Crocker Galleria. Yes, that shopping is also about as moribund as the former Westfield Mall, but is apparently slated for an ambitious renovation.
And Chen’s restaurant operations are not waving any white flags or anything. He’s got other places in the works in Paris and New York City, plus his “Asia Eataly” concept called Asia Live is lined up to open this year in Santa Clara’s Westfield Valley Fair mall.
So yes, China Live has been dealt a nearly $7 million setback, and bankruptcy proceedings are incredibly difficult. But China Live could ultimately stay alive, and thrive, right at the very 644 Broadway location where the former landlord tried to evict them, and beat them in court.
Image: James F via Yelp
