New York real estate firm Roger Equities has acquired the site of the shuttered Cinema 123 at 1001 Third Avenue on the Upper East Side. The purchase price for the historic Manhattan plot stands at 41 million dollars. The previous owner, Reading International, had originally brought the property to market around seven months ago with an asking price of 50 million dollars.
To finance the transaction and upcoming preparatory work, lender S3 Capital provided a loan of 37 million dollars. The cinema located on the plot had a 64-year history before permanently closing its doors in September ahead of the sale. While the purchase price had already surfaced in market reports in early September, the buyer's identity had remained undisclosed until recently.
Residential development plans and tax incentives
According to sources familiar with the transaction, Roger Equities plans to redevelop the site into a multi-family rental building. The scheme is expected to be delivered under New York's new 485-x tax incentive programme. Current plans for the project remain at an early stage.
The transaction was brokered by agency Newmark, whose team comprising Adam Doneger, Adam Spies, and Avery Silverstein advised on the disposal. A Newmark debt advisory unit consisting of Jordan Roeschlaub, Max Ralby, Niv Shahmoon, and Dante DiStefano was responsible for arranging the financing.
Development potential opposite Bloomingdale's
The development plot covers an area of around 8,000 square feet and is situated on Third Avenue, directly opposite the eastern side of the Bloomingdale's flagship store. Previous marketing materials had pitched the site as a location for a mixed-use luxury tower.
- —Plot area of around 8,000 square feet in a prime Upper East Side location
- —Permissible standard residential space of around 80,000 square feet
- —Expansion potential to nearly 100,000 square feet if affordable housing is included
According to industry reports, zoning on the site permits a new residential scheme of approximately 80,000 square feet of usable space. Should the project incorporate an affordable housing component, the buildable volume could increase to nearly 100,000 square feet. Neither S3 Capital, Roger Equities, nor Newmark provided an immediate comment on the details of the transaction when requested.
