It is immediately to the south of Pico House, and thus just off Los Angeles Plaza, the city's historic main square.

In 1849, cabinetmaker William Abbott, moved to Los Angeles from St. Albany Indiana, establishing himself as a member of the city's elite.

[citation needed] He purchased two adjacent lots, running his furniture business in one, with plans to build a theater in the other.

[2] Mercedes Garcia additionally worked at the Sister's School in Los Angeles, teaching decorative arts and music.

[2] Mercedes Garcia Abbott ran the theater, seeing an opportunity to bring high arts to the plaza and establish her own social position.

When the Wood's Opera House opened nearby in 1876, and there was an outbreak of smallpox, the Merced ceased being the city's leading theatre.