The structure of the Teatro Margherita was designed in full Nouveau style by Francesco De Giglio. It was the first building in Bari made with reinforced concrete, and is unique in Europe for the particular building on stilts. Being entirely surrounded by water, the theater was connected to the mainland by a pier. The inauguration of the theater with the name Kursaal Margherita took place August 22, 1914.

After its glorious history on February 20, 1980 it closed due to the high costs of maintenance.

In 2009 the theater was reopened after a long static and external restoration. The building, although not completely restored internally, has been used as a temporary exhibition hall.
The intention of the municipality was to use it again as a theater, however, the high cost of the project to rely on private and lack of funds (both public and private) did change the development plans for this building. It was converted in the first plexus museum of contemporary arts of Bari, the BAC.

The layout of the Center for Contemporary Arts in Bari, in fact, has been entrusted to a public-private foundation (BAC, Bari Contemporary Art) participated by the Municipality and the Morra Greco Foundation of Naples, owned by the Campania Region. The Morra Greco Foundation offered its prestigious collection of contemporary art on a free loan for a period of thirty years.
The project, designed by architect David Chipperfield, does not change the theater that will remain in its original form. The elements of the project include the functional organization of the interior spaces and the introduction of a staircase leading to gallery.