Steve Ayers, the owner of Sacramento’s landmark Elks Tower, has secured a $925,000 settlement from the operators of the former Claim Jumper that once anchored the building’s ground floor before closing during the pandemic. The payout puts to rest a closely watched dispute over unpaid rent that had been hanging over the historic high-rise and its future redevelopment plans. The settlement was reported Feb. 25, 2026.
According to the Sacramento Business Journal, Ayers will receive $925,000 toward back rent tied to the Claim Jumper space at Elks Tower. Reporter Ben van der Meer noted that the restaurant’s pandemic shutdown left a sizeable rent hole, and Ayers told the outlet he was “mollified” by the agreement, a careful way of saying he is not thrilled, but he will take the win.
Why Landlords And Restaurants Clashed After COVID
The Elks Tower settlement is one episode in a national tug-of-war over pandemic-era commercial rent. When dining rooms went dark and revenue evaporated, some restaurant tenants stopped paying, some landlords went straight to court, and others tried to hash out deals in conference rooms and over Zoom.
The Real Deal documented how many restaurateurs and property owners either reworked lease terms or ended up in litigation over unpaid rent. At the same time, Nation’s Restaurant News highlighted how judges across the country issued very different rulings, with outcomes often hinging on local law and specific lease language.
What This Means For Elks Tower’s Next Act
With the unpaid-rent fight finally off the books, a major legal cloud has lifted from Elks Tower. Clearing that dispute could make it easier to market or reimagine the high-profile ground-floor space that Claim Jumper once occupied.
The historic building, long the subject of redevelopment chatter and, according to earlier coverage, listed for sale last year, has been central to Ayers’s efforts to find new life for the landmark. As the Sacramento Business Journal outlined, the tower’s corner perch at 11th and J streets has drawn interest from would-be buyers and developers looking for a statement property in downtown Sacramento.
The Bottom Line
The settlement closes a messy pandemic-era chapter for one of downtown Sacramento’s most recognizable addresses and underscores just how complicated the legal landscape became after mass business shutdowns. From coast to coast, landlord and tenant battles over restaurant leases have reshaped how property owners think about full-service dining as a ground-floor anchor, a trend explored by the Los Angeles Times in its recent look at chef-driven chains and their courtroom fights.
