New York, Dec 03 — Empire State Realty Trust, Inc. (NYSE: ESRT) (the “Company”), announced that it has agreed to acquire 555-557 Broadway (the “Scholastic Building”) for $386 million. The property is located in the SoHo submarket of Manhattan, between Spring and Prince Streets with entrances on both Mercer Street and Broadway, and is comprised of approximately 368,000 square feet of office and 28,000 square feet of prime retail. The property is 70% leased, including a 15-year office lease with Scholastic (NASDAQ: SCHL) for 222,000 square feet and fully leased retail with a weighted average lease term of approximately 8 years. There is a three-floor block of over 110,000 square feet, a unique availability in a prime market. The all-cash transaction is expected to close in December 2025.
“We are pleased to welcome Scholastic to our roster of great companies who are our tenants and look forward to our new relationship with them,” stated Anthony E. Malkin, Empire State Realty Trust’s Chairman and Chief Executive Officer. “We are excited to bring this combination of contractual revenue, embedded growth, and significant value-creation potential from our ability to market the three uniquely large floors in a more than 110,000 square feet block.”
Adam Spies, Josh King and Avery Silverstein of Newmark (NASDAQ: NMRK) represented the seller in the transaction.
The Company has posted on the “Investors” section of its website (www.esrtreit.com) the latest investor presentation, which contains additional details on the transaction referenced herein.