Varsity Theatre

Varsity Theatre was a former movie palace at 456 University Avenue in Palo Alto, California. The name originated with an earlier theater that opened across University Avenue in 1911, but the principal Varsity building was a new venue designed by the architectural brothers James Reid and Merritt Reid. It opened on September 26, 1927, with a screening of Rose of the Golden West. The building combined Mission Revival and Spanish Renaissance influences, using a prominent neon marquee, a long colonnaded courtyard, and a richly detailed interior to create the character of a 1920s cinematic palace. The reported construction cost was $250,000. The theater was initially associated with Peninsula Theatres Corporation, a subsidiary of the West Coast Theatres chain. Following West Coast Theatres’ merger into Fox Theatres, the venue was also known as the Fox Varsity Theatre. Its location on University Avenue placed it within a concentration of Palo Alto cinemas, and the theater became part of the city’s entertainment landscape for much of the twentieth century. By the 1970s, the Varsity had shifted from primarily first-run exhibition toward repertory and revival programming. It also operated as a live music venue and included a restaurant in its courtyard. The theater was one of only three venues in the San Francisco Bay Area that continued to show The Rocky Horror Picture Show, helping it maintain a distinctive identity among local movie houses. Landmark Theatres operated the venue from 1987 until its closure in 1994. The closure was attributed to financial difficulties. The building’s next phase generated substantial local controversy. Owner Charles "Chop" Keenan sought a zoning variance allowing additional square footage, arguing that the expansion was needed to help cover the cost of seismic retrofitting. Local residents and the San Francisco Chronicle opposed the proposed transformation, emphasizing the architectural importance of the theater. The project ultimately converted the property into a Borders bookstore. Although early plans contemplated gutting the structure, they were revised to comply with federal historic-building requirements, preserving much of the interior as well as the building’s exterior appearance. Borders was liquidated in 2011, after which the property remained vacant for several years. In 2015, Gensler renovated the building for HanaHaus, a coworking concept operated by SAP, while also accommodating a Blue Bottle café. HanaHaus used the former auditorium and retained the stage; before the COVID-19 pandemic, the space was available for conference rentals. The closure of both HanaHaus and Blue Bottle was announced in September 2024. The Varsity is therefore no longer an operating movie-theater brand, but its preserved building remains a notable example of Palo Alto’s historic commercial and entertainment architecture.

The Varsity Theatre’s history began with an earlier cinema opened in 1911 on the opposite side of University Avenue in Palo Alto. A larger replacement building was commissioned for 456 University Avenue from James Reid and Merritt Reid, the architectural brothers known for work including the Hotel del Coronado. Their design, completed in 1927, combined Mission Revival and Spanish Renaissance elements. The result was a movie palace distinguished by a neon marquee, an elongated courtyard lined with columns, and a substantial auditorium. The reported cost was $250,000. The new theater opened on September 26, 1927, showing Rose of the Golden West. The venue was operated through Peninsula Theatres Corporation, which was affiliated with the West Coast Theatres chain. After West Coast Theatres merged into Fox Theatres, the cinema was also identified as the Fox Varsity Theatre. It became one of several cinemas serving University Avenue and remained an important local entertainment venue for decades. Its role changed during the 1970s, when the Varsity became a revival house rather than relying solely on current commercial releases. It also hosted live music and maintained a restaurant in its courtyard. The theater’s repertory identity was reinforced by regular showings of The Rocky Horror Picture Show; it was one of only three San Francisco Bay Area movie theaters still presenting the film at the time described in the reference material. Landmark Theatres operated the Varsity from 1987 through 1994. The cinema closed that year because of financial difficulties. The future of the building then became a preservation issue. Owner Charles "Chop" Keenan obtained a zoning variance permitting additional square footage, presenting the change as a way to offset seismic-retrofitting expenses. Residents protested, and the San Francisco Chronicle also criticized the proposed conversion, comparing the theater’s architectural significance with that of the Louvre. Although initial plans would have substantially gutted the building, the design was modified to meet federal historic-building requirements. The resulting Borders bookstore retained much of the original interior and the exterior appearance. Borders entered liquidation in 2011, leaving the building unused until a 2015 renovation. Gensler adapted the former cinema for HanaHaus, a coworking venue operated by SAP, and a Blue Bottle café. HanaHaus occupied the former auditorium and preserved the stage. Prior to the COVID-19 pandemic, the auditorium could also be rented for conferences. In September 2024, the closure of HanaHaus and Blue Bottle was announced. The Varsity’s operating history as a cinema has ended, but the building’s successive uses illustrate the adaptive reuse of a historic theater within Palo Alto’s commercial core.

1. 2024HanaHaus and Blue Bottle closure announced

   The closure of the coworking space and café operating in the former theater is announced in September.

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2. 2015Building reopens for coworking and café use

   A Gensler renovation creates HanaHaus coworking space and a Blue Bottle café, with HanaHaus using the former auditorium.

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3. 2011Borders is liquidated

   The bookstore occupying the former theater is liquidated, and the building remains vacant afterward.

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4. 1994Cinema closes

   The Varsity closes after financial difficulties.

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5. 1987Landmark Theatres begins operation

   Landmark Theatres takes over operation of the theater.

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6. 1970Venue develops a repertory and live-entertainment role

   During the 1970s, the theater becomes known for revival films, live music, and a courtyard restaurant.

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7. 1927New Varsity Theatre opens

   The new movie palace at 456 University Avenue opens on September 26 with Rose of the Golden West.

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8. 1911Original Varsity Theatre opens

   An earlier Varsity Theatre opens on the opposite side of University Avenue in Palo Alto.

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A historic Palo Alto movie palace that evolved from conventional cinema exhibition into a repertory-film and live-entertainment venue before being adaptively reused for retail, coworking, café, and event functions.

• Movie exhibitionCinema1927

  The Varsity’s primary historical offering was theatrical film exhibition in a large, architecturally elaborate movie palace. It opened with a 1927 feature presentation and operated for decades as a neighborhood cinema before later emphasizing repertory programming.

• Repertory film programmingCinema1970

  From the 1970s, the venue developed a revival-house identity, screening older and cult films rather than functioning only as a first-run theater. Its recurring presentation of The Rocky Horror Picture Show was an especially notable part of its local identity.

• Live music and courtyard diningEntertainment and hospitality1970

  The theater expanded beyond film exhibition during the 1970s by hosting live music and operating a restaurant in its colonnaded courtyard.

• 2015Adaptive reuse as coworking and café spaceStrategy

  Following several years of vacancy after the Borders liquidation, the historic theater required a new commercial function.

  What changed. Gensler renovated the building for HanaHaus coworking space, operated by SAP, together with a Blue Bottle café. The former auditorium and stage were retained.

  Aftermath. The space served as a coworking and café venue until the closure announcement in September 2024.

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• 1994Conversion from cinema to bookstoreStrategy

  After the theater closed amid financial difficulties, the owner pursued a new commercial use and sought additional square footage to help finance seismic retrofitting.

  What changed. A zoning variance was granted for conversion of the building into a Borders bookstore. Plans that would have gutted the structure were revised to preserve much of the historic interior and the exterior.

  Aftermath. The building operated as a Borders store until the chain’s liquidation in 2011.

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• 2024HanaHaus and Blue Bottle closure announced

  The coworking operation occupying the former auditorium and the associated Blue Bottle café were reported to be closing in September 2024.

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• 1994Varsity Theatre closes after financial difficulties

  The Palo Alto Varsity Theatre ceased operations after Landmark Theatres’ period of operation, with financial difficulties cited as the reason for closure.

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• Former theater is converted into a Borders bookstore

  A zoning variance enabled additional floor area for seismic-retrofit costs, allowing the former theater to be converted into a Borders bookstore while preserving much of its historic fabric.

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1. Varsity Theatre (Palo Alto)