Roger Equities Buys Third Avenue Cinema Site

The 8,000-square-foot lot formerly housing Cinema 123 was acquired for $41 million and is planned for multifamily housing.

Updated on Nov. 10, 2026 in Commercial

Fenced, cleared urban lot between weathered brick walls on a New York City avenue, with stacked construction steel under overcast daylight. — Roger Equities acquired the Cinema 123 site at 1001 Third Avenue for $41 million from S3 Capital-backed financing, planning multifamily housing on the Upper East Side lot. AI Illustration. Upload story photo >

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Roger Equities acquired the movie theater site at 1001 Third Avenue for $41 million, after Cinema 123 closed in September 2026 ahead of the sale. S3 Capital provided a $37 million acquisition and predevelopment loan for the property.

Why it matters

The sale of a long-operating Upper East Side theater site for residential redevelopment reflects how commercial property in New York City is being repurposed. Roger Equities is looking to build multifamily housing under the city's 485-x tax abatement program.

The sale price of $41 million came in below the $50 million target Reading International set when it listed the property roughly seven months earlier. The source does not say what the final building program or completion date will be.

The players

Roger Equities

Roger Equities is the buyer of the Third Avenue site, which it plans to convert into multifamily housing.

Reading International

Reading International is the cinema operator that listed the property with a $50 million target before the sale.

S3 Capital

S3 Capital is the lender that provided the $37 million acquisition and predevelopment loan for the property.

Newmark

Newmark is the commercial real estate brokerage that arranged the sale and negotiated the debt.

The details

Cinema 123 operated at the site for 64 years before closing in September 2026 in advance of the sale. Newmark arranged the transaction, and the roughly 8,000-square-foot lot sits across Third Avenue from the eastern side of Bloomingdale's Manhattan flagship store. Projections in reporting place a residential development of around 80,000 square feet on the site, or nearly 100,000 square feet if it includes an affordable housing component.

September 2026: Cinema 123 closed in advance of the sale.
Early September 2026: MarketWatch reported the purchase price without naming the buyer.
Late October 2026: Crain's New York Business reported earlier marketing suggested a mixed-use luxury tower.
November 10, 2026: Commercial Observer reported Roger Equities' acquisition.

Market Dynamics

The Third Avenue conversion is planned under New York City's 485-x tax abatement program, which the city uses to encourage new residential construction on sites like this one. Projects using that incentive are a practical route for converting commercial land in Manhattan into housing.

For New Yorkers, the conversion would add housing stock to the Upper East Side if the planned multifamily project proceeds. The source does not indicate when construction would begin or whether the affordable housing component will be included.

The takeaway

Commercial sites in New York City can be converted to housing through incentive programs when the project pencils out. Watch the development plan for the site for details on its final size and affordable housing component.