$1750 does not sound like too much for a 2-BR in a high cost of living area. Assuming you've already priced other options (take a look what's available on craigslist or other online rental resources) and your rent is on par with the going rate, I'd accept it as the cost of doing business. You are making an excellent salary living where you are, with lots to spare after paying the rent. Maintaining space for your kids and nearby to them should be a priority. So, short of finding a lower price on a completely comparable apartment, I'd say carry on and enjoy!
Also, as a divorced dad with kids who got tons of (bona fide expert) parenting advice, I would absolutely stay away from suggestions to downsize or to turn it into AirBnB lodging or anything else. On the contrary, you should turn that spare bedroom into a dedicated space for them, decorated appropriately for ages with their own, personal things. It should not be a storage room with a bed, or an office, or anything else but a bedroom for them. They should feel like that is their bedroom, not just a "place where they stay when they're with dad." The fact that they're with their mother most of the time makes this even more imperative.