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What's the Deal With 693 Sutter?

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From the Curbed tipline:

693 Sutter has been vacant/gutted for a while. There is scaffolding up but I'm not seeing much of any progress. What's going on here- why is it vacant and why for so long? What is supposed to go there? Why hasn't it been condemned as an eyesore? Back in 2003, the project to convert the office building into 10 apartments with 2 floors of office was approved by the Planning Commission. 2 years later, they went back to convert those two office floors into 6 additional apartments. Permits expired left and right, and kept getting renewed every year. By 2010, the final inspection permits were issued with additional seismic permits dating from June 2011 - but those are the most recent. No real explanation for the delay (but the conversion of those extra units makes us guess it was financial). In the world of city permits though, they have three years to make things happen, so the delay may not be resolved any time soon. Dear readers, have any tips on this project to share? The tipline's always open and you can leave a comment after the jump.
[Photo: Curbed reader Teo]