Empire State Realty Trust, Inc. has agreed to acquire the Scholastic Building for $386 million in an all-cash transaction.
The property is located in the SoHo submarket of Manhattan and comprises approximately 368,000 square feet of office and 28,000 square feet of prime retail space.
The Scholastic Building is 70% leased, with a 15-year office lease with Scholastic for 222,000 square feet and fully leased retail spaces.
Acquisition Details
Empire State Realty Trust to acquire 555-557 Broadway (Scholastic Building) for $386 million in an all-cash transaction.
Lease Information
The Scholastic Building is 70% leased, with a 15-year office lease with Scholastic and fully leased retail spaces.
Revenue Potential
Significant value-creation potential anticipated from marketing three uniquely large floors.
- The acquisition adds a strategic property in a prime market area of Manhattan, enhancing the portfolio of Empire State Realty Trust.
- With contractual revenue and embedded growth opportunities, the acquisition aligns with the company's focus on well-leased, top-tier assets.
Empire State Realty Trust's acquisition of the Scholastic Building strengthens its presence in Manhattan and opens avenues for value creation through unique leasing opportunities. The addition of this property fits well with the company's strategy of owning and operating quality real estate assets.