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What's the Deal with the Hoadley House in Lower Pac Heights?

From the Curbed inbox:

What's the deal with the Hoadley House (SF Landmark #216)? It looks like it is in the process of being gutted. I stopped by an open house when it was for sale, and a lot of the interior looked to be original (and in need of serious TLC). Now the upper floors appear to have been completely gutted, and there are debris boxes in the home's enormous yard. Any word on who the buyers are or what's going on with the construction?

The Milo Hoadley House at 2908-10 Bush Street is one of San Francisco's oldest, dating all the way back to 1858. Built for civil engineer Milo Hoadley, who surveyed much of the city in its earliest years and even suggested flattening out Telegraph, Russian, and Nob hills, the house stayed in his family til 1900. So what's the story with it today?

Hoadley owned a huge 160-acre part of the Western Addition and Pacific Heights, known appropriately as the Hoadley Tract. He had his hand in lots of the formation of the area, including creating a major reservoir in San Mateo County (now known as Crystal Springs). In the 1850s he built his square-form Italianate style house with a covered porch and originally surrounded by gardens. Once the city began to spread westward, he subdivided his tract and sold it off for a tidy profit. Now the block is full of rowhouses built in the late 19th century.

The house has changed hands a bunch since the Hoadley's lived there, most recently selling in February 2013 for $2.35M. It was listed as a two-unit property, with 9 bedrooms and 3 bathrooms. Now permits have been filed and granted for "Interior remodel to second and attic levels, seven baths and one kitchen. Reinforce attic floor joists. Seismic upgrade." Seven bathrooms? We're confused, but at $300K, this sounds like a hefty remodel.
· Landmark #216 – Milo Hoadley Residence [SF Planning]
· Building permit #201402289608 [DBI]
· 2908-2912 Bush St, San Francisco, CA [Zillow]