Regal Cinemas to Rescue Former ArcLight Theater in LA
The movie theater chain will take over an 87,000-square-foot lease in Los Angeles' San Fernando Valley
It’s Regal to the rescue.
The Regal Cinemas movie theater chain run by Cineworld will take over an 87,046-square-foot lease and the former ArcLight theater at Douglas Emmett’s Sherman Oaks Galleria, after the previous movie theater operator failed to survive pandemic lockdowns and permanently closed in April.
The new Regal Sherman Oaks Galleria is set to open soon, and a full remodel will start shortly after. It will eventually feature three format auditoriums, including IMAX, 4DX and ScreenX, and will also include a new VIP section with upgraded auditoriums.
“We plan to open the theatre as soon as possible and start refurbishing the location,” Mooky Greidinger, CEO of Cineworld, said in a statement.
Movie theaters were one of the hardest hit sectors of retail, due to extended capacity restrictions in the box office’s biggest markets: California and New York. AMC, Regal Cinemas and Cinemark are the movie operators with the largest commercial mortgage-backed securities (CMBS) footprints, according to Trepp research published this week.
The Decurion Corporation announced in April that its Pacific Theatres and ArcLight Cinemas locations would permanently close. Its other major locations at Rick Caruso’s shopping centers are reportedly on track to be taken over by AMC, but that has not been made official. However, the iconic Pacific Cinerama Dome and ArcLight Hollywood at 6360 Sunset Boulevard are still waiting for their hero. The Hollywood Arclight is reportedly one of the highest-grossing movie theaters in the nation.
JLL’s Shauna Mattis, Scott Burns, Greg Briest and Alex Otto represented Douglas Emmett. The brokerage said Starbucks, 24 Hour Fitness, and Paul Mitchell School signed long-term lease renewals for a combined total of more than 58,000 square feet in 2020 at the Sherman Oaks Galleria.