Tres Leches Cafe is set to close its downtown Phoenix coffeeshop after nearly seven years. The announcement comes one year after a judge ordered the business could stay in its Van Buren Street building amid a lease dispute with its landlord.
The impending closure follows a Jan. 15 ruling in a lawsuit between cafe co-owner Jose “E.T.” Rivera and his landlord Otilia Diaz. Rivera owns the cafe with his business and life partner Magaly Martinez Saenz. The disagreement arose over a lease and its end date.
In court filings, Rivera says he extended the lease and continued to pay rent. Diaz says that Rivera initially declined a lease extension. Any rental discussions after, she claimed, were new and made Rivera a "holdover" tenant liable for higher rent.
A temporary restraining order allowed the cafe to continue operating in the building while the case unfolded.
Tres Leches Cafe opened on Van Buren Street near 17th Avenue in 2018. This was the cafe's second downtown location, originally operating on 13th Avenue and Roosevelt Street from 2016 to 2018. The Mexican coffee shop serves cafe de olla, horchata lattes and pan dulce in a comfortable communal space decorated with vibrant murals.
Another Tres Leches location opened in 2020 in South Phoenix, on Central and Sunland avenues. That location will remain open. Rivera says he will extend the South Phoenix shop’s hours, which he limited due to light rail construction that is now completed. He’ll also move staff from the Van Buren location there.
“Right now my goal is for us to condense operations at our drive-thru in South Phoenix and then for us to focus on getting that location to be operating to its potential full-time,” he says.
In addition to extending its hours, Rivera says he will open the South Phoenix location’s patio and host a grand re-opening.
Tres Leches Cafe has garnered fans locally and even caught the eye of the former vice president. Rivera met Kamala Harris in 2022 at an event honoring small, Latino-owned businesses for their perseverance during the pandemic.
As Rivera readies to shut down his Van Buren cafe, he has not determined its last day of service. However, he says they have been asked to move out by Jan. 29, which his landlord confirmed.
Rivera filed a lawsuit in December 2023 asking the court for a temporary restraining order to allow them to stay in the building. The complaint also alleged the landlord failed to repair issues, from a leaking roof to a faulty HVAC unit, in a timely manner.
The recent Maricopa County Superior Court decision dissolved that temporary restraining order, which was granted in January 2024.
With the order no longer in place, Tres Leches Cafe’s lease terms revert to a “month-to-month status,” according to the court’s ruling.
“Based on that ruling, we’re going to move. We don’t really have an option,” Rivera says.
Despite Tres Leches’ impending departure, the legal drama does not end as litigation is still pending. Both parties can seek damages and attorneys' fees. Rivera estimates he has spent more than $70,000 in legal fees and is now representing himself.
Diaz confirmed via text that a new tenant is slated to move into the building on Van Buren Street.
5602 S. Central Ave.
The impending closure follows a Jan. 15 ruling in a lawsuit between cafe co-owner Jose “E.T.” Rivera and his landlord Otilia Diaz. Rivera owns the cafe with his business and life partner Magaly Martinez Saenz. The disagreement arose over a lease and its end date.
In court filings, Rivera says he extended the lease and continued to pay rent. Diaz says that Rivera initially declined a lease extension. Any rental discussions after, she claimed, were new and made Rivera a "holdover" tenant liable for higher rent.
A temporary restraining order allowed the cafe to continue operating in the building while the case unfolded.
Tres Leches Cafe opened on Van Buren Street near 17th Avenue in 2018. This was the cafe's second downtown location, originally operating on 13th Avenue and Roosevelt Street from 2016 to 2018. The Mexican coffee shop serves cafe de olla, horchata lattes and pan dulce in a comfortable communal space decorated with vibrant murals.
Another Tres Leches location opened in 2020 in South Phoenix, on Central and Sunland avenues. That location will remain open. Rivera says he will extend the South Phoenix shop’s hours, which he limited due to light rail construction that is now completed. He’ll also move staff from the Van Buren location there.
“Right now my goal is for us to condense operations at our drive-thru in South Phoenix and then for us to focus on getting that location to be operating to its potential full-time,” he says.
In addition to extending its hours, Rivera says he will open the South Phoenix location’s patio and host a grand re-opening.
Tres Leches Cafe has garnered fans locally and even caught the eye of the former vice president. Rivera met Kamala Harris in 2022 at an event honoring small, Latino-owned businesses for their perseverance during the pandemic.
As Rivera readies to shut down his Van Buren cafe, he has not determined its last day of service. However, he says they have been asked to move out by Jan. 29, which his landlord confirmed.
Owners Jose "E.T." Rivera and Magaly Martinez Saenz inside Tres Leches Café at 17th Avenue and Van Buren Street.
Magaly Martinez Saenz
Lease disagreement led to lawsuit
The lease dispute between Diaz and Tres Leches began in November 2023. Diaz sent a notice for the cafe to leave within five days. At the time, Rivera was caught off guard, telling Phoenix New Times he and the landlord had been engaged in conversations to extend the lease.Rivera filed a lawsuit in December 2023 asking the court for a temporary restraining order to allow them to stay in the building. The complaint also alleged the landlord failed to repair issues, from a leaking roof to a faulty HVAC unit, in a timely manner.
The recent Maricopa County Superior Court decision dissolved that temporary restraining order, which was granted in January 2024.
With the order no longer in place, Tres Leches Cafe’s lease terms revert to a “month-to-month status,” according to the court’s ruling.
“Based on that ruling, we’re going to move. We don’t really have an option,” Rivera says.
Despite Tres Leches’ impending departure, the legal drama does not end as litigation is still pending. Both parties can seek damages and attorneys' fees. Rivera estimates he has spent more than $70,000 in legal fees and is now representing himself.
Diaz confirmed via text that a new tenant is slated to move into the building on Van Buren Street.
Tres Leches Cafe
1714 W. Van Buren St.5602 S. Central Ave.
