Grub Street just noticed a new café coming to the ground floor of a newly renovated building at 1161 Mission (between 7th and 8th across from Heaven's Dog), possibly called San Francisco Café. Next door, though, some nice exterior finishes and a realtor's sign suggest a large eatery on the way. Further digging yielded a few more details.
The space is huge: 5,000 square feet going all the way back to Minna, but there's no kitchen build-out as of yet, just a plan for a kitchen. The owner of the building, John Mayeda, also owns Circolo Restaurant and Ultra Lounge in Potrero, and unless he gets some serious bites on leasing the space (there haven't been many thus far), he's considering creating a new restaurant and nightclub there himself, finishing off the enormous basement for use as a dance floor.
The place is already zoned for nightclub or restaurant use, and what's another ultra lounge if you've got one already?