California Theatre
in
Downtown San Diego
the latest acquisition by
Prebys Foundation

On July 17, San Diego’s Prebys Foundation signed a purchase and sale agreement for the derelict California Theatre building at 1122 Fourth Ave. The Foundation anticipated closing on the property on July 31.

Opened April 22, 1927, as the New California Theatre, the building has seen various ownership changes over the decades, but has sat unused since 1990. An eight-story office building forms the front of the structure on Fourth Avenue, while the flies of the onetime vaudeville theater at the rear looms over Third Avenue directly opposite City Hall and the San Diego Civic Theatre. Thus it is a key property in any future plans for the revitalization of both the Civic Center and the C Street corridor.

As reported by Jennifer Van Grove in the San Diego Union-Tribune:

• In 2023, the city of San Diego sued the building’s insolvent owner — Melbourne, Australia-based Caydon Property Group — seeking to force demolition. The city has said in court documents that the crumbling structure is a hot spot for homeless people and trespassers, a threat to public safety and a blight on the neighborhood. The parties settled the litigation in August, with the agreement imposing a court-ordered timeline that requires Caydon to sell the property before the end of this year. The 0.58-acre site was marketed for sale soon after.

As outlined in the Foundation’s press release:

• For years, the vacant California Theater has stood as a highly visible challenge in the heart of downtown. By acquiring the property, Prebys intends to remove a significant barrier to revitalization while creating new possibilities for housing, arts and culture, economic opportunity, and community life around the Civic Center. The acquisition aligns with the Foundation’s broader vision of a vibrant, arts- and culture-centered downtown that connects neighborhoods, supports residents and businesses, and serves as a welcoming civic destination for all San Diegans. Following the close of escrow, the Foundation’s immediate priority will be to safely prepare the site for demolition through the required engineering, permitting, and regulatory processes. Once the site is cleared, Prebys will work with community, public, and market partners to explore the highest and best long-term use for the property. No final development plans have been determined.

With respect to the $6.3 million purchase price, and the additional millions in future expenses, Grant Oliphant, President and CEO of the Prebys Foundation, said:

• “This is about creating possibilities. The California Theater has long represented one of the greatest barriers to realizing downtown San Diego’s full potential. By removing that obstacle, we can begin creating space for new ideas, new investment, and new opportunities that strengthen our civic core and help build a downtown that serves everyone. Foundations are uniquely positioned to make patient, long-term investments like this — investments that may not make sense on a traditional development timeline but can create lasting public value for generations.”

The Foundation began investing in renewing the city’s central business district when it bought the Wells Fargo Plaza tower at 401 B St. in April 2025. Earlier this year, Prebys purchased 1420 Kettner Blvd., a mile to the west, to serve as its new headquarters.

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