Scholastic completes $386 million sale-leaseback of NYC headquarters

Scholastic Corporation (NASDAQ: SCHL) completed a $386 million sale-leaseback transaction for its New York City headquarters located at 555-557 Broadway, according to a press release statement.

Empire State Realty Trust (NYSE: ESRT) purchased the property through a subsidiary while Scholastic entered into a 15-year lease with extension options to continue operating from the location with a reduced footprint.

Newmark Group (NASDAQ: NMRK) served as exclusive real estate advisor to Scholastic on the transaction. The Newmark team was led by Co-Head of Capital Markets Adam Spies, Executive Vice Chairman Joshua King, and Executive Managing Director Avery Silverstein.

Under the agreement, Empire State Realty Trust assumes responsibility for ongoing property maintenance and capital improvements. The transaction is expected to generate significant net proceeds for Scholastic while allowing the company to retain long-term access to space for its business operations.

The sale-leaseback structure enables Scholastic to unlock capital from its real estate while maintaining operational continuity at its current location in Manhattan's SoHo district.

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