The firm is also touting that a buyer can demolish the structure without pushback from a local preservation group that has proved to be an obstacle in the past, and can move at speedy clip if it uses previously entitled plans for a hotel and condo project.<\/p>\n
The property is currently unpriced.<\/p>\n
\u201cI see this location as being a landmark location. There\u2019s not a lot of land left in the civic core,\u201d said Jason Kimmel, an executive with CBRE and one of the property\u2019s listing agents.<\/p>\n
The California Theatre\u2019s adjacency to San Diego\u2019s Civic Center means that someone with a long-term outlook can own a piece of the future, he said, referencing the recent arts-and-education-center redevelopment vision<\/a> being advanced by downtown boosters.<\/p>\n \u201cThat\u2019s what we\u2019re going to be selling,\u201d Kimmel said.<\/p>\n But finding a buyer right now, one that can look beyond the location\u2019s current conditions and is willing to tackle the demolition work, is unlikely, said real estate analyst Gary London, a principal of local firm London Moeder Advisors.<\/p>\n \u201cThe problem with the site is that it\u2019s next to a semi-derelict and underutilized part of downtown, the C Street corridor,\u201d he said. \u201cThis area is in bad shape, and has been for many years, starting with the creation of the trolley that basically devastated C Street. And, then, the overall degradation, over time, of the quality of the city\u2019s property hasn\u2019t helped at all.\u201d<\/p>\n Opened April 22, 1927, as the New California Theatre, the building at 1122 Fourth Ave., directly opposite City Hall, has been closed since 1990 with multiple ownership groups contemplating demolition or restoration over the years. In the ensuing decades, the one-time vaudeville theater and the attached eight-story office building are said to have deteriorated beyond repair.<\/p>\n Melbourne, Australia-based Caydon Property Group bought the property in late 2019 for $21.1 million. In April 2021, Caydon received City Council approval to replace the dilapidated structure with a 41-story boutique hotel and condo project called Theatre House.<\/p>\n The following year, however, the owner began actively marketing the site for sale<\/a>. By July 2022, Caydon was insolvent and the developer\u2019s largest creditor, OCP Asia, had appointed Australia-based receiver McGrathNicol Restructuring to liquidate all of the company\u2019s assets.<\/p>\n During Caydon\u2019s collapse, the city\u2019s code enforcement division documented severe deterioration, including building elements that appeared likely to fall into the public right-of-way. The property is also said to be a hot spot for homeless people, teen skaters and other illegal trespassers, who have repeatedly gained access to the building over the years.<\/p>\n In April 2023, the city sued Caydon in San Diego Superior Court, seeking to declare the California Theatre a public nuisance and secure a court order to force the owner to remedy the situation. Last month, the parties resolved the legal dispute<\/a>, with Caydon committing in a settlement agreement to sell the property and close escrow by the end of next year. If there is no buyer, the owner must raze the building.<\/p>\n CBRE is now under a time crunch, working to meet a March 31 deadline for Caydon to enter into a purchase agreement with a buyer.<\/p>\n The real estate firm is publicizing the listing widely and will share it with its database of clients all over the world, Kimmel said. The buyer, he said, will likely have local ties, but have access to national or international money. CBRE, Kimmel said, is also better positioned than the previous broker, retained in 2022 for a short stint, to sell the property.<\/p>\n That\u2019s because Save Our Heritage Organisation, the historical preservation group that sued a previous owner and successfully blocked demolition, will not stand in the way of redevelopment, according to a Wednesday press release issued by CBRE.<\/p>\n The preservation group\u2019s settlement agreement with the previous owner is superseded by the city\u2019s recent court order, SOHO Executive Director Bruce Coons said when reached by email.<\/p>\n![\"An](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/09\/SUT-L-CATHEATRE-AERIAL-01.jpg\")
An aerial view of the California Theater at the corner of Fourth Ave. and C Street in downtown San Diego. (Troy Hartman)<\/p>\n