Carlsbad’s long-vacant downtown Village theater, which opened in the 1920s showing the groundbreaking silent film “It” starring Clara Bow, has been sold to a company that says it will preserve the building with perhaps a restaurant, bar and live entertainment.
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“This building has been sitting empty for far too long, and we want to change that,” said Kipp Gstettenbauer, project lead with Carlsbad Theatre LLC. The sale closed Tuesday.
“Our goal is to bring real energy back to this corner of the Village — a place where people can grab dinner, have a drink and catch a show, all under one roof — and honor the historicity of the building,” Gstettenbauer said in a written announcement.
“We know how much this theater means to the community, and we’re looking forward to working with the community as we define what comes next,” he said.
The commercial real estate company RAF Pacific Group, also known as RPG, bought the building in 2017 and explored various options for the property, none of which materialized.
The theater, with about 300 seats, has been empty since 2019 and was for sale for much of that time, raising concerns within the community that it could be demolished to make way for a new development.
A group called Save the Carlsbad Theatre formed in 2023 to pursue its preservation and tried unsuccessfully to obtain a lease for the property.
“The theater is in excellent condition and could immediately become a venue for movies, film festivals, lectures, concerts, meetings or special community events,” said the group’s organizers Nate Larson and Ken Kebow, in a 2023 letter to the Carlsbad City Council.
“Most exciting could be the hosting of local performing groups such as youth theater, music and dance, which often have to go outside Carlsbad for performances,” they said.
Larson said Thursday he was surprised and pleased to learn of the sale.
“For 99 years, the Carlsbad Theatre has been the cultural heart of our town,” Larson said. “I am very hopeful that the new owner will honor the history and integrity of our historic Carlsbad landmark, and that under their stewardship it will continue to serve the community as it always has, as a theater.”
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Carlsbad City Council member Melanie Burkholder, in July, with the council’s unamimous support, asked staffers to investigate “any options for the council to consider that might assist in the preservation of this historic property.”
As that process got underway, city officials learned that a potential buyer was already in discussions with the previous owner for a potential use that might align with the community’s wishes.
“It’s a win for the Village and for Carlsbad that there are plans to continue the tradition of entertainment uses for that historic location,” Burkholder said in an email Thursday.
The next steps for the building include securing permits and finding a tenant to build out the space, according to the release. The exact land use, tenant mix and day-to-day operations are still being determined and will take shape through the city’s entitlement process.
The new owners said they will continue to work with the community and local organizations such as the Boys & Girls Club of Carlsbad and the Carlsbad Community Theatre.
The Boys and Girls Club has had its Village clubhouse on Roosevelt Street a few blocks away since 1952. The 43-year-old Community Theatre stages its productions in the Community Cultural Arts Center at Carlsbad High School on Lancer Way.
The old theater is in the heart of Carlsbad’s downtown Village neighborhood. It’s a half-block from the Coaster train station and within walking distance of beachfront motels, outdoor restaurants, coffee shops, retail stores and other attractions.
It’s also across the street from New Village Arts, which stages live performances in its 100-seat theater and a 60-seat cabaret in a renovated hardware and lumber building leased from the city.
