AMC to Replace Pacific Theaters at The Grove, Americana at Brand

Real estate owner and developer Caruso has forged a deal with AMC Entertainment Holdings to backfill the movie theaters at both The Grove in Los Angeles and The Americana at Brand in Glendale. The movie theaters were occupied by Pacific Theaters, which shuttered during the pandemic.

AMC will occupy the 14-screen theater at The Grove. Before the pandemic, the theater was the second highest grossing property in the Greater Los Angeles area. AMC will also occupy the 18-screen theater at the American at Brand. The theater was the fifth highest grossing in Los Angeles prior to the pandemic. Both theaters are expected to reopen in August.

The AMC brand will bring some changes. It plans to upgrade the food and beverage offerings at both locations, and it will offer its AMC Stubs program. It also plans to renovate three theaters to bring the experience of premium large format screens.

The retail market was bifurcated during the pandemic. Some properties, namely those with daily needs anchors, did well, but those with anchor tenant subject to coronavirus restrictions—like movie theaters—struggled. There is a new investment market for properties in the latter category. With higher returns available for big box assets when compared to other net lease sectors, investors seeking higher yields will continue to target these assets and evaluate the big box retailer environment as it continues to evolve, according to The Boulder Group.

Pacific Theaters wasn’t the only chain to close during the pandemic. Regal Cinemas, UK-based Cineworld, said it would “temporarily suspend operations” at Regal theaters at the end of last year. Also, B&B Theatres, the sixth-largest theater chain in the U.S, could declare bankruptcy in months. The other two leading theater chains, AMC Entertainment Holdings Inc. and Cinemark Holdings Inc. have said they plan to remain open, according to S&P.