Empire State Realty Trust Sells Manhattan Office Building at 250 West 57th Street for $275 Million in Strategic Real Estate Acquisition Pivot

NEW YORK — Empire State Realty Trust (NYSE: ESRT) has completed the disposition of its 250 West 57th Street Manhattan office building for $275 million, a transaction that included the buyer's assumption of $180 million in existing mortgage debt. The company described the activity as consistent with its strategy to recycle capital into high-quality assets with long-term cash flow growth prospects.

The sale, announced June 2, 2026, was brokered by Adam Spies, Josh King, Avery Silverstein, and Ben Lushing of Newmark (NASDAQ: NMRK), who represented the Company in the sale of 250 West 57th Street. The transaction was structured to recycle capital into ESRT's December 2025 acquisition of 130 Mercer Street without recognition of a taxable gain.

Office Real Estate Disposition: 250 West 57th Street

The 250 West 57th Street property is an office asset in Manhattan. ESRT did not disclose the property's square footage, capitalization rate, or per-square-foot pricing in its announcement. The implied equity value of the transaction, after accounting for the $180 million in assumed mortgage debt, stands at approximately $95 million. ESRT did not identify the buyer of 250 West 57th Street in its announcement.

ESRT characterized the sale as consistent with its strategy to recycle capital into assets better aligned with its portfolio focus. The company's portfolio, as of March 31, 2026, comprises approximately 8.0 million rentable square feet of office space, 0.8 million rentable square feet of retail real estate, and 743 residential units across New York City.

Capital Recycled Into SoHo: 130 Mercer Street

Proceeds from the 250 West 57th Street disposition are linked to ESRT's December 2025 acquisition of 130 Mercer Street in SoHo. The capital recycling structure was executed without recognition of a taxable gain, according to the company's announcement. Further details regarding the 130 Mercer Street property, including square footage and purchase price, were not disclosed in the announcement.

Broadway Campus Strengthened Through $110 Million Ground Lease Buyout

Concurrent with the 250 West 57th Street sale, Empire State Realty Trust completed the purchase of the land underlying two of its Broadway Campus properties — 111 West 33rd Street and 1400 Broadway — for an aggregate purchase price of $110 million. The transaction was funded with balance sheet liquidity, according to the company.

At the time of closing, the ground leases carried remaining terms of approximately 51 years at 111 West 33rd Street and approximately 38 years at 1400 Broadway. By acquiring the fee interest in the land beneath both buildings, ESRT converts the properties from leasehold to fee-simple ownership. The company stated the transaction enhances the long-term value of its portfolio.

Portfolio Context

Empire State Realty Trust describes itself as a New York City-focused REIT that owns and operates a portfolio of office, retail, and multifamily real estate assets. Its flagship Empire State Building was ranked the No. 1 Top Attraction in the United States in Tripadvisor's 2026 Travelers' Choice Awards: Best of the Best Things to Do. The company is also recognized as a leader in energy efficiency and indoor environmental quality.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a New York City-focused real estate investment trust. As of March 31, 2026, its portfolio includes approximately 8.0 million rentable square feet of office space, 0.8 million rentable square feet of retail space, and 743 residential units. Additional information is available at esrtreit.com.

Sources: Empire State Realty Trust Press Release, June 2, 2026