Real estate company Roger Equities has acquired the site of the historic Cinemas 123 cinema at 1001 Third Avenue on New York's Upper East Side for 41 million dollars. The previous owner, Reading International, had brought the property to market roughly seven months ago with an asking price of 50 million dollars. The closure of the cinema, which had operated at this location for more than 64 years, already took place in September ahead of the now completed disposal.
To finance the acquisition as well as the initial development phases, S3 Capital provided a 37 million dollar loan. Whilst MarketWatch reported on the agreed purchase price as early as the beginning of September, the buyer's identity remained confidential until recently. According to sources close to the transaction, Roger Equities plans to redevelop the property into a modern multi-family residential building, making use of New York City's 485-x tax incentive programme.
Development potential opposite Bloomingdale's flagship
The project is currently still at an early planning stage. Previous marketing materials from estate agency Newmark indicated that the site is ideally suited for a mixed-use luxury residential tower. The plot extends to around 8,000 square feet and is located on Third Avenue directly opposite the east side of the renowned Bloomingdale's department store.
According to reports by Crain's New York Business, the zoning rights on the site allow for the construction of a residential building with approximately 80,000 square feet of usable space. Should the project incorporate an affordable housing component, the gross floor area could be expanded to almost 100,000 square feet.
Advisers and financing partners involved
The transaction was advised extensively on the brokerage side by Newmark. A team comprising Adam Doneger, Adam Spies and Avery Silverstein was responsible for the sales negotiations. In parallel, a debt advisory group from the firm, including Jordan Roeschlaub, Max Ralby, Niv Shahmoon and Dante DiStefano, structured the debt financing for the project.
- —Purchase price for the property: 41 million dollars
- —Acquisition and pre-development loan from S3 Capital: 37 million dollars
- —Potential floor area: up to nearly 100,000 square feet with the inclusion of affordable housing
- —Urban location: 1001 Third Avenue, opposite Bloomingdale's
Neither representatives from Newmark nor the leadership at S3 Capital and Roger Equities have commented on press enquiries regarding the completion of the transaction so far.
