Empire State Realty Trust, Inc. has agreed to acquire 555-557 Broadway (the "Scholastic Building") for $386 million.
The property is located in the SoHo submarket of Manhattan and consists of office and retail space totaling approximately 396,000 square feet.
The acquisition includes a three-floor block of over 110,000 square feet and significant leasing agreements with Scholastic and other tenants.
Acquisition Details
Empire State Realty Trust is acquiring the Scholastic Building for $386 million, enhancing its property portfolio in Manhattan.
Leasing Information
The property is 70% leased, with a 15-year office lease with Scholastic for 222,000 square feet and fully occupied retail space.
Value Creation
The acquisition presents value creation opportunities through leasing the unique three-floor block in a prime market.
- The acquisition strengthens Empire State Realty Trust's presence in Manhattan's SoHo submarket, adding a strategically located property to its portfolio.
- With the addition of the Scholastic Building, the company enhances its contractual revenue, growth potential, and value-creation opportunities.
- This acquisition aligns with the company's strategy to own and operate well-leased, modernized assets in key NYC locations, further solidifying its position as a leading REIT in the region.
Empire State Realty Trust's acquisition of the Scholastic Building marks a significant expansion of its portfolio and underscores its commitment to strategic growth and value creation.