The end of a yearslong saga between two Castro businesses and their landlord is about to be over.
Castro Coffee Company and Castro Nail Salon are both set to close and relocate in the neighborhood by April 30.
The two businesses have been negotiating with the Nasser Family, who own The Castro Theatre, which includes the two storefronts.
Brothers Ken Khoury and Riyad Khoury, who own Castro Coffee and Castro Nail, respectively, had sought to remain in their current locations and enlisted the help of Mayor Daniel Lurie. Both Ken and Riyad Khoury confirmed the deadline to Hoodline.
Castro Coffee Company and Castro Nail Salon will vacate their storefronts by April 30. | Photo: Steven Bracco/Hoodline
The relocations come after Another Planet Entertainment (APE) reopened The Castro Theatre earlier this month. APE has announced they intend to open a box office in one of the spaces.
During negotiations, APE disavowed any involvement in the decision not to renew the leases of the two longtime Castro businesses.
Terms of the relocation were not disclosed, and when asked, Ken and Riyad Khoury declined to comment or provide details. Previously, activist Michael Petrelis shared public records indicating the Khourys were seeking a combined $300,000 for tenant improvements and other relocation costs.
The relocation involves a bit of musical chairs; Castro Coffee will move one storefront over to 421 Castro St., currently occupied by Lisa Hair. Lisa Hair will subsequently move to two storefronts over to 415 Castro St., formerly Double Rainbow. The entire building from 401-421 Castro St. is owned by relatives Elia and Jane Khoury.
Lisa Hair Design will move from 421 Castro to 415 Castro St. | Photo: Steven Bracco/Hoodline
Public records indicate a permit was issued in November 2025 to remodel 415 Castro for Lisa Hair Design. At the time the permit was filed, Hoodline contacted Riyad Khoury, but he denied that the business was moving. Construction costs are estimated at $150,000.
Ken Khoury tells Hoodline that construction is nearly wrapped up at 415 Castro and will soon begin at 421 Castro. Ken is hopeful that construction will finish in time, allowing for both Lisa Hair and Castro Coffee to move without having to close for a short period.
"We are working diligently and getting permits," said Ken Khoury.
Castro Nail Salon's current storefront at 431 Castro St. | Photo: Steven Bracco/Hoodline
Riyad Khoury confirmed that Castro Nail Salon intends to move to 548 Castro St., formerly the plant shop How's It Hanging. However, Riyad explained that lease negotiations have hit an impasse.
"We had an initial agreement with the previous agent, but we couldn't close the lease," said Riyad Khoury.
Riyad tells Hoodline they are currently working on lease terms with the new agent. "We've been waiting for a lease agreement for over five weeks of precious wasted time," said Riyad. "Unfortunately, with no resolution on the horizon."
A sticking point, says Riyad Khoury, is the requirement to sign a triple-net lease agreement. A triple net lease includes base rent plus property taxes, insurance, and maintenance costs.
Should Riyad not be able to negotiate a lease, he's unsure if Castro Nail Salon will be able to find a new storefront. Riyad Khoury says he's considering other vacant Castro storefronts.
Riyad Khoury is negotiating to reopen Castro Nail Salon at 548 Castro St. | Photo: Steven Bracco/Hoodline
In response to the deal, Castro Theatre co-owner Chris Nasser Padian told the Bay Area Reporter, "We extend our sincere appreciation to Mayor Lurie and board President Mandelman, both of whom played instrumental roles in reaching an agreement that thoughtfully balanced the needs of our long-standing tenants, the Khoury family, with those of Another Planet Entertainment as we move forward with the renovation and revitalization of the Castro Theatre."
"The solution devised ensures that these cherished businesses will remain right here in the Castro for years to come. We also thank the Castro community for its engagement, patience, and continued commitment to preserving the neighborhood’s cultural legacy," added Nasser Padian.
Reflecting on the entire relocation, Ken Khoury said, "It's comforting knowing where I am going." "We will continue to serve the community the best we can."
"Sometimes you have to move on," added Ken Khoury.
