Toronto’s east end is set for a major adaptive-reuse project as Altea Active prepares to convert the former Cineplex Cinemas Beaches into a large-format fitness and wellness facility. The redevelopment will transform the cinema at 1651 Queen Street East into a 59,000-square-foot club, marking another step in the Canadian operator’s expansion strategy.
Cineplex confirmed that the theatre’s final screenings will take place on February 17, following the landlord’s decision to lease the space to a new tenant. Altea Active will take over the site under a long-term lease, introducing a premium wellness concept to one of Toronto’s most established neighbourhood retail corridors.
The planned Altea Active Beaches fitness club is expected to open in 2028. The project reflects a broader shift in urban retail real estate, where large-format wellness and experiential uses are increasingly replacing legacy entertainment and big-box tenants.
Adaptive Reuse of a Neighbourhood Cinema
The six-screen Cineplex Cinemas Beaches has operated as a community entertainment venue for more than two decades. Originally opened in 1999 as an Alliance Atlantis cinema, the theatre was later acquired and rebranded by Cineplex in 2019. Over its roughly 25-year history, the complex served as the primary first-run multiplex for Toronto’s east-end neighbourhoods.
Cineplex has attributed the closure to the landlord’s decision to lease the space to a different tenant, rather than to a corporate strategy to exit the market. The theatre’s final day will be February 17, after which the property will transition to redevelopment.
Once the project is complete, the site will be repositioned as a major wellness destination. At approximately 59,000 square feet, the club will be somewhat smaller than several of Altea’s largest locations, but still substantial in scale for an urban neighbourhood environment.
Executive Perspectives on the Project
Altea Active’s leadership says the Beaches location aligns with the company’s long-term strategy of targeting urban communities with strong demographic fundamentals.
Jeff York, Chief Executive Officer of Altea Active, said the project represents the type of opportunity the company is pursuing. “This project represents exactly the type of long-term, urban opportunity we are targeting. The Beaches has a strong sense of community and an active, health-oriented demographic that aligns naturally with Altea’s platform. Repurposing a well-known destination like this allows us to deliver a highly differentiated wellness experience while contributing meaningfully to the community’s next chapter.”
David Wu, Co-Founder and Chief Growth Officer of Altea Active, emphasized the redevelopment aspect of the project. “This commercial redevelopment allows us to thoughtfully re-imagine an iconic space and deliver a wellness destination that serves members across fitness, recovery, and lifestyle, while acting as a long-term anchor for the surrounding retail ecosystem.”
From the landlord perspective, the shift to a wellness concept is expected to support the broader retail environment. Robert Parker, Vice President at Muzzo Group, commented, “This site represents a unique opportunity to reinvigorate a prominent Queen Street East property with a use that drives daily traffic and long-term vitality. Altea Active brings a proven, high-quality concept that aligns with the neighbourhood and enhances the overall strength of the asset.”
Fitness as an Emerging Anchor Use
The conversion of the former cinema into a wellness club highlights the evolving role of fitness in urban retail environments. Large-format gyms and social wellness clubs are increasingly serving as anchor tenants, particularly in spaces once occupied by cinemas or big-box retailers.
Unlike traditional retail anchors, which often rely on weekend peaks, fitness and wellness operators generate steady daily traffic. Members typically visit before or after work, and throughout the day, which can support surrounding food, beverage, and service tenants.
This shift is part of a broader trend across North America. Landlords have been repurposing former department stores, cinemas, and big-box spaces into fitness, medical, entertainment, and mixed-use concepts that create consistent foot traffic and extend activity beyond traditional retail hours.
Altea Active’s Growth Strategy
Founded in 2017 by former Movati Athletic executives David Wu and Michael Nolan, Altea Active has positioned itself as a premium social wellness operator. The company combines large-format gym facilities with boutique studios, recovery areas, and social spaces designed to encourage longer visits and a “third place” environment.
The company’s first location opened in Winnipeg in 2019 at approximately 80,000 square feet. It expanded into Toronto’s Liberty Village in 2022 with an 89,000-square-foot facility featuring multiple studios, aquatics, and social amenities. A Vancouver location followed in 2023, and a 129,000-square-foot Ottawa flagship opened in 2024.
In 2024, former Farm Boy CEO Jeff York joined the company as chief executive officer, bringing experience in scaling consumer brands and operating large retail networks. His appointment has been associated with a new phase of expansion for the company.
Altea has also introduced a luxury spin-off concept called Avant by Altea, which is designed for more compact, high-end urban locations. The first Avant location open in Toronto’s Yorkville area last year, occupying the upper level of a former Nordstrom Rack space at the corner of Yonge and Bloor.
National Development Pipeline
The Beaches redevelopment forms part of a broader pipeline of large-format wellness projects across Canada. Several major openings are scheduled to begin in early 2027.
Construction is expected to start in the second quarter of 2026 on a 125,000-square-foot conversion of a former RONA big-box site in Edmonton. The company is also developing its second Vancouver club at Oakridge Park. In addition to these adaptive-reuse projects, the company is advancing multiple ground-up developments in urban and suburban markets, with construction starts anticipated between 2027 and 2028.
Together, these projects reflect a strategy that combines large, high-quality real estate with strong demographic fundamentals. The company has outlined a long-term vision of up to 50 locations across Canada if the model continues to perform as expected.
Leasing Representation and Site Opportunities
The Beaches transaction was handled by Kenzie Kohl of Aurora Retail Group who represented Altea Active in the deal. The brokerage continues to seek additional opportunities for the brand’s expansion in Ontario.
Future site inquiries can be directed to Kenzie Kohl or Sam Winberg at Aurora Retail Group., as the company continues to pursue both adaptive-reuse and ground-up development opportunities.
