"Roundabout is excited that we now have a beautiful landmark theatre that will become a showcase for our musical productions," Grossman told Playbill On-Line. The nearly $25 million deal was completed on July 22 with the sale of over $17 million in bonds added to a $6.75 million grant from New York City. The former discotheque — located at 254 West 54th Street — will become Roundabout's third house in Manhattan's theatre district. The non-profit already holds a long-term lease on the American Airlines Theatre — the Broadway house at 227 West 42nd Street formerly known as the Selwyn. In addition, the company is currently renovating the space at 111 West 46th Street — known as the American Place Theatre.

The ongoing renovations to the American Place are expected to be completed by early 2004, Grossman also confirmed. In a previous written statement, Roundabout artistic director Todd Haimes said the company would rename the theatre after Laura Pels, in honor of the producer, philanthropist, long-term Roundabout board member and owner of Paris' Theatre de l'Atelier.

Cabaret moved from the Henry Miller Theatre to Studio 54 in 1998, after a construction accident closed down the former location for several weeks. The show, currently in its fifth year of performances, is still running.