The impending arrival marks the latest transformation for a property that was once home to one of San Diego's most ambitious hospitality startups. When Australia-inspired market and cafe concept MRKT SPACE debuted on the base floor of The Beacons building in Leucadia in late 2020, the business quickly became a neighborhood gathering place, blending specialty coffee, gourmet groceries, wine retail, cocktails, all-day dining and community events within a stylish coastal setting. The company expanded to La Jolla Shores in 2022 and announced plans for an even larger evening-focused restaurant in San Diego's Bankers Hill neighborhood.
At the time, founders described MRKT SPACE as more than a cafe, positioning it as a modern neighborhood hub inspired by similar concepts popular throughout Australia. The growth appeared rapid. The brand attracted significant media attention, glowing lifestyle coverage, and a devoted customer base drawn to its blend of upscale convenience store, bottle shop, cafe and restaurant.
But the expansion ultimately proved unsustainable. The La Jolla Shores location quietly shuttered, the planned Bankers Hill branch never materialized, and the flagship Encinitas restaurant abruptly closed in early 2024 with assurances that it was only temporary.
As months turned into more than a year, customers increasingly questioned whether the closure was truly temporary. In February 2025, when asked by SanDiegoVille what was happening with the long-shuttered Encinitas location, MRKT SPACE responded that it was "working on adding an additional evening experience" and would be announcing updates shortly. Those updates never came.
Today, MRKT SPACE's once-promising San Diego footprint has largely disappeared. The company's only remaining local presence appears to be a much smaller cafe operating within the Town and Country Resort in Mission Valley.
Now Oto Sushi is set to take over the former Leucadia space. The restaurant first opened in Laguna Beach in November 2024 and quickly established itself as one of Orange County's most talked-about newcomers. The concept has earned recognition for its sustainability-focused approach to seafood sourcing and its elevated dining experience that blends traditional Japanese techniques with contemporary presentation.
According to the company, all seafood served at Oto is sourced through MSC, ASC and BAP-certified fisheries, Seafood Watch-approved suppliers and Smart Catch partners. The restaurant states that it only serves seafood rated green or yellow under sustainability guidelines and works with suppliers emphasizing responsible fishing and aquaculture practices.
The restaurant's menu extends well beyond traditional sushi offerings. Guests can expect nigiri topped with customized yakumi garnishes designed to complement specific fish varieties, specialty rolls, robatayaki skewers, sake selections, cocktails and a menu that also includes unexpected items such as premium wagyu burgers that have developed a following of their own.
The Laguna Beach location has also distinguished itself through unusually strict dining policies designed to create what ownership describes as a calm and immersive experience. The restaurant discourages athletic wear and flip-flops, limits device usage within the dining room, prohibits strollers in dining areas, and encourages families with young children to dine earlier in the day before evening service begins. The concept reflects a growing trend among upscale restaurant operators seeking to create more curated hospitality experiences that emphasize atmosphere as much as food.
The Encinitas location appears likely to be considerably larger than many traditional sushi restaurants due to the footprint inherited from MRKT SPACE, potentially allowing for expanded dining, private events, and community programming.
The opening also continues a broader evolution underway throughout Leucadia's restaurant scene. Once known primarily for surf shops, taco stands and casual beach-town eateries, the North Coast Highway 101 corridor has increasingly attracted chef-driven concepts, craft cocktail programs and destination dining experiences as property values and tourism continue to rise.
For longtime Encinitas residents, however, the arrival of Oto Sushi may be equally notable for what it finally resolves: the lingering mystery surrounding one of Leucadia's most prominent vacant restaurant spaces. After more than a year of unanswered questions, false starts, and repeated suggestions that MRKT SPACE would eventually return, the building finally appears headed toward a new future.
Oto Sushi is expected to open later this year at 782 North Coast Highway 101 in San Diego's North County city of Encinitas. For more information, visit otosushi.co.
Originally published on May 31, 2026.
According to the company, all seafood served at Oto is sourced through MSC, ASC and BAP-certified fisheries, Seafood Watch-approved suppliers and Smart Catch partners. The restaurant states that it only serves seafood rated green or yellow under sustainability guidelines and works with suppliers emphasizing responsible fishing and aquaculture practices.
The restaurant's menu extends well beyond traditional sushi offerings. Guests can expect nigiri topped with customized yakumi garnishes designed to complement specific fish varieties, specialty rolls, robatayaki skewers, sake selections, cocktails and a menu that also includes unexpected items such as premium wagyu burgers that have developed a following of their own.
The Laguna Beach location has also distinguished itself through unusually strict dining policies designed to create what ownership describes as a calm and immersive experience. The restaurant discourages athletic wear and flip-flops, limits device usage within the dining room, prohibits strollers in dining areas, and encourages families with young children to dine earlier in the day before evening service begins. The concept reflects a growing trend among upscale restaurant operators seeking to create more curated hospitality experiences that emphasize atmosphere as much as food.
The Encinitas location appears likely to be considerably larger than many traditional sushi restaurants due to the footprint inherited from MRKT SPACE, potentially allowing for expanded dining, private events, and community programming.
The opening also continues a broader evolution underway throughout Leucadia's restaurant scene. Once known primarily for surf shops, taco stands and casual beach-town eateries, the North Coast Highway 101 corridor has increasingly attracted chef-driven concepts, craft cocktail programs and destination dining experiences as property values and tourism continue to rise.
For longtime Encinitas residents, however, the arrival of Oto Sushi may be equally notable for what it finally resolves: the lingering mystery surrounding one of Leucadia's most prominent vacant restaurant spaces. After more than a year of unanswered questions, false starts, and repeated suggestions that MRKT SPACE would eventually return, the building finally appears headed toward a new future.
Oto Sushi is expected to open later this year at 782 North Coast Highway 101 in San Diego's North County city of Encinitas. For more information, visit otosushi.co.
Originally published on May 31, 2026.