I think your correct. I heard that they were going to turn that area into housing in a couple of years.
Seinfeld restaurant facade was filmed there but it was filmed in a couple of other places. The Real Real restaurant is in New York and is called "Toms Restaurant. Apparently in each shot they cut "Toms" out. Many of the exterior shots were from the original one in New York.
I think they may rebuild the facades and they will, most likely, burn down again in the future.