Empire State Realty Trust Announces $386M Acquisition of SoHo Office and Retail Property
NEW YORK — December 2, 2025 — Empire State Realty Trust, Inc. (NYSE: ESRT) announced it has agreed to acquire the Scholastic Building at 555-557 Broadway in Manhattan’s SoHo neighborhood for $386 million in an all-cash transaction expected to close in December 2025.
Empire State Realty Trust Expands Office and Retail Real Estate Portfolio
The acquisition adds approximately 368,000 square feet of office space and 28,000 square feet of retail space to Empire State Realty Trust’s portfolio. The property, located between Spring and Prince Streets with entrances on both Mercer Street and Broadway, is currently 70% leased. Scholastic Corp. (NASDAQ: SCHL) occupies 222,000 square feet under a 15-year office lease, while the retail space is fully leased with a weighted average lease term of about eight years.
According to the company, the building includes a three-floor block of more than 110,000 square feet available for lease, representing a large contiguous space in a prime SoHo location. The firm described the acquisition as an opportunity to combine contractual revenue with potential value creation through new leasing activity.
Transaction Details and Representation
Adam Spies, Josh King, and Avery Silverstein of Newmark (NASDAQ: NMRK) represented the seller in the transaction. The deal reflects Empire State Realty Trust’s continued focus on acquiring well-located, income-producing properties in New York City.
“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,” said Anthony E. Malkin, chairman and chief executive officer of Empire State Realty Trust. “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.”
Empire State Realty Trust’s Broader Real Estate Portfolio
As of September 30, 2025, Empire State Realty Trust’s portfolio included approximately 7.8 million rentable square feet of office space, 0.8 million rentable square feet of retail space, and 743 residential units. The company’s flagship property, the Empire State Building, continues to anchor its portfolio and attract global visitors through its observatory operations.
The firm stated that additional details on the transaction are available in its latest investor presentation on its website at www.esrtreit.com.
Sources
Related Articles
Landmark Properties Acquires 642-Bed Domain at Oxford in Joint Venture with Liberty Mutual Investments and Peninsula Investments Group
JLL Closes $62.7M Sale and $38.8M Freddie Mac Financing for Fort Collins Apartment Community
Lion Real Estate Group Acquires 168-Unit LIHTC Community Timber Ridge From PedCor Partnership in Lynchburg, Virginia
