Formerly the Sunset School, the site was purchased by the city of Carmel in 1965 with the plan to develop it into a cultural center.

[3] It has a steep pitched side-gabled roof designed by architect Columbus J. Ryland and constructed by M. J.

[7] The city intended to turn the school into a performing arts center and the transaction was completed in 1965 through the passage of a bond measure.

Riley acknowledged the difficulty of transforming the building: "It was designed as a 1920 schoolhouse, not as a center of the arts.

After performing in a one-man show at the theatre, Christopher Plummer famously wrote, "For God's sake, get yourself a real theater."

The LARES system, which cost around $300,000 USD, enhanced the volume of the performers, though many of the classical music groups using the venue were dissatisfied with it.

[11] From 2017 to 2022, the Sunset Center was contracted by the city to manage the nearby Forest Theater venue.

[12][13] Recordings of concerts at the Sunset Center have been made commercially available, dating back to when it was still a school.