After nearly a century standing tall in downtown San Diego—most of it spent abandoned—the California Theatre has finally reached a turning point. A legal settlement announced this week requires the building’s owner to sell the property or demolish it by the end of 2026.
A Downtown Eyesore
Once a glamorous movie palace, the California Theatre has long been considered one of downtown’s most glaring eyesores. In recent years, it became a hotspot for trespassing, fires, and safety hazards. City officials say the building contains asbestos, lead paint, and unstable structures that threaten passersby.
Mayor Todd Gloria called the settlement a long-awaited win:
“For decades, the California Theatre has blighted downtown and been a barrier to progress… this settlement delivers accountability and a path to finally resolve the unacceptable conditions at the site.”
What the Settlement Requires
- August 30, 2025 → The property must be formally listed for sale.
- December 31, 2026 → Deadline to close escrow on a sale.
- If no sale closes, the owner (Caydon Property Group) must apply for demolition permits within 90 days.
- Noncompliance could result in up to $1 million in penalties.
- The owner is also required to secure the property with fencing, security patrols, and fire watch.
Why It Matters
Caydon bought the property in 2019 with plans for condos and a hotel but went bankrupt in 2022, leaving the theatre to sit empty. Meanwhile, neighbors and business owners have complained for years about the safety risks and blight.
With this settlement, downtown San Diego may finally see action on a property that has stood in limbo for decades. Whether through redevelopment or demolition, the Civic Center area is poised for long-awaited change.
