Paramount Pictures has officially taken over the lease for the Bay Theater in Pacific Palisades. The neighborhood cinema plans to reopen later this year after remaining closed since the devastating Palisades fire in January 2025. Under the new agreement with property owner Caruso, the historic theater will undergo major upgrades. These include state-of-the-art projection technology and in-seat food and beverage service.
Located within the Palisades Village shopping center at 1035 N. Swarthmore Avenue, the renewed cinema will showcase first-run theatrical movies from all major studios. It will also host classic film screenings, curated events, and special programming. Operations will be managed by THE LOT, a La Jolla-based luxury dine-in theater chain with multiple locations across California.
Reviving a Community Cornerstone
The announcement marks a major milestone in the ongoing recovery of the Pacific Palisades neighborhood. Palisades Village officially reopened in August after more than $100 million in infrastructure work. This effort included thorough environmental refurbishments to eliminate any potential contaminants left by the blaze.
Rick Caruso, founder and executive chairman of real estate firm Caruso, emphasized the broader cultural significance of the project. During a casual lunch last year, Caruso discussed the future of the venue with David Ellison, chief executive of Skydance and head of Paramount Pictures. Ellison expressed a strong commitment to keeping the theatrical experience alive.
“The comeback of this movie theater is a great signal for all of L.A.,” Rick Caruso said. “Los Angeles is resilient, and we’re going to show the country that Los Angeles can bounce back from a terrible, terrible disaster, and the comeback is going to be much greater than the setback.”
A New Chapter Following Netflix’s Tenancy
The Bay Theater was previously leased by Netflix starting in 2021. The streaming service used the facility for special events, classic film screenings, and original theatrical presentations of its own films. Caruso praised Netflix and its Chief Executive, Ted Sarandos, calling them “incredible stewards” of the property during their tenure.
Financial terms of Paramount’s long-term lease and the exact investment figure for the renovation have not been disclosed. However, studio leadership views the acquisition as a clear statement of support for theatrical exhibition. The move follows Paramount completing its acquisition of Warner Bros. Discovery under the combined Skydance banner, which carries a commitment to release at least 30 films annually.
Luxury Experience and Future Outlook
When the doors reopen later in the year, moviegoers can expect high-end luxury seating, state-of-the-art sound systems, gourmet in-theater dining, and signature c**ktails. Adolfo Fastlicht, founder and chief executive of THE LOT, expressed enthusiasm about managing the historic venue.
“Through our curated offering and dedicated hospitality, we look forward to welcoming the Pacific Palisades community back to the movies, the way they were intended to be shared,” Fastlicht said in a joint statement.
An official grand opening date and schedule of events will be announced in the coming weeks. The return of the Bay Theater stands as one of the most prominent cultural revivals in the area since the 2025 fires.
