When the Santa Fe Railroad wanted a right-of-way through the Luna property in 1880, the proposed railroad tracks were planned directly through the Luna hacienda. In order to gain their right-of-way, the railroad agreed to build a new home for Antonio Jose Luna and his family according to their specifications. Before long, a southern colonial style mansion, built with adobe materials of the southwest was completed for the family. However, Antonio Jose died in 1881, the same year that the house was completed. As a result, his oldest son, Tranquilino and his family were the first to live in the luxurious home. When Tranquilino died in 1892, his younger brother Solomon took the reins of the empire and moved into the spacious mansion.

In the early 1900s control passed to Soloman's nephew, Eduardo Otero, because Soloman had not children. In the 1920s multiple improvements to the mansion were made, including the addition of a solarium, a front portico, and ironwork that surrounded the entire property. It was Eduardo’s wife, Josefita, more familiarly known as "Pepe,” that was largely responsible for these many efforts. The daughter of William R. Manderfield, founder of the Santa Fe New Mexican, Josefita lovingly spent her days caring for her magnificent gardens and improving her fine home.

Over the years the mansion changed hands several times before it was purchased and renovated as a fine dining establishment in the 1970s. It was then that the ghost of Josefita began to appear. Perhaps she didn’t like the renovations or maybe she just wants to stick around to make sure they were doing a good job on the home that she had spent so many years looking after.

Dressed in 1920s period clothing, she has been described by employees as appearing very real. Most often she is seen in two former bedrooms on the second floor, an attic storeroom, and at the top of the stairs leading to the second floor bar.

At the top of the stairs sits an old rocking chair which she has often been seen sitting in and rocking slowly. On one occasion when an employee approached the ghostly apparition, she simply stood up then slowly vanished. More often she is seen walking up and down the stairs, a habit that has been so commonplace that employees barely notice anymore.