{"id":46290,"date":"2025-12-29T07:02:10","date_gmt":"2025-12-29T04:02:10","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=46290"},"modified":"2025-12-24T16:31:34","modified_gmt":"2025-12-24T13:31:34","slug":"scholastic-esrt-sale-leaseback-manhattan-office","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/scholastic-esrt-sale-leaseback-manhattan-office\/","title":{"rendered":"Scholastic &#038; ESRT Close Sale-Leaseback of SoHo Headquarters Office"},"content":{"rendered":"<p>Empire State Realty Trust (ESRT) recently acquired the office property at 555-557 Broadway in New York City. At the start of December, ESRT announced that it had agreed to purchase the property from publishing house Scholastic Inc. for $386 million in an all-cash transaction.<\/p>\n<p>Newmark Group, Inc. served as the exclusive real estate advisor to the seller.\u00a0One of the world\u2019s largest publishers and distributors of children\u2019s books, Scholastic has been the main occupier in the property and, under the terms of the transaction, will continue operations here through a 15-year lease that also includes extension options. Through the sale-leaseback deal, Scholastic retained use of 222,000 square feet of <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ny\/new-york-city\/\" target=\"_blank\" rel=\"noopener\">New York City office space<\/a> at the property.<\/p>\n<p>\u201cWe are pleased to welcome Scholastic to our roster of great companies who are our tenants and look forward to our new relationship with them,\u201d said Anthony E. Malkin, Empire State Realty Trust\u2019s chairman and CEO. \u201cWe 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.\u201d<\/p>\n<p>Located in the SoHo submarket of New York City, the property is comprised of two edifices collectively referred to as the Scholastic Building with entrances on both Mercer Street and Broadway.<\/p>\n<p>The property at<strong> 555 Broadway<\/strong> was completed in the late 1880s as a retail site (Charles Broadway Rouss Wholesale Auction Dry Goods department store) and was later converted to office use 100 years later. The <a href=\"https:\/\/sohobroadway.org\/a-look-back-at-sohos-broadway-broadway-was-his-middle-name\/\" target=\"_blank\" rel=\"nofollow noopener\">iconic SoHo Cast Iron Historic district building<\/a> rises 10 stories above Broadway and incorporates nearly 180,000 square feet of highly prized <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ny\/manhattan\/\" target=\"_blank\" rel=\"noopener\">Manhattan office space<\/a>, in addition to nearly 37,000 square feet of retail.<\/p>\n<div id=\"attachment_46291\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_manhattan-office-space-at-555-broadway-in-soho.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-46291\" class=\"size-full wp-image-46291\" src=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_manhattan-office-space-at-555-broadway-in-soho.jpg\" alt=\"street level view of the Manhattan office building at 555 Broadway \" width=\"640\" height=\"800\" srcset=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_manhattan-office-space-at-555-broadway-in-soho.jpg 640w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_manhattan-office-space-at-555-broadway-in-soho.jpg?resize=120,150 120w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_manhattan-office-space-at-555-broadway-in-soho.jpg?resize=240,300 240w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><p id=\"caption-attachment-46291\" class=\"wp-caption-text\"><i>The historic fa\u00e7ade of 555 Broadway in the SoHo submarket of Manhattan still bears the name of the original owner, Confederate merchant Charles Broadway Rouss.<\/i><\/p><\/div>\n<p>The building at<strong> 557 Broadway<\/strong> was a <a href=\"https:\/\/www.nytimes.com\/2000\/04\/23\/realestate\/a-building-fits-in-by-standing-out.html\" target=\"_blank\" rel=\"nofollow noopener\">bold headquarters expansion<\/a> project by Scholastic, completed in 1999. Originally intended to serve as the front door to Scholastic\u2019s headquarters, the building includes a nearly 7,000-square-foot store on the ground floor and mezzanine; a 299-seat auditorium inspired by Palladio\u2019s 16th-century Teatro Olimpico in Vicenza, Italy; and several 10,000-square-foot floors that align with (and expand by 50%) existing floors at 555 Broadway.<\/p>\n<div id=\"attachment_46292\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_office-space-in-manhattan-at-557-broadway-in-soho.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-46292\" class=\"size-full wp-image-46292\" src=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_office-space-in-manhattan-at-557-broadway-in-soho.jpg\" alt=\"street level view of the Manhattan office building at 557 Broadway in SoHo\" width=\"640\" height=\"800\" srcset=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_office-space-in-manhattan-at-557-broadway-in-soho.jpg 640w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_office-space-in-manhattan-at-557-broadway-in-soho.jpg?resize=120,150 120w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/12\/CE_office-space-in-manhattan-at-557-broadway-in-soho.jpg?resize=240,300 240w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><p id=\"caption-attachment-46292\" class=\"wp-caption-text\"><em>Built by Scholastic to expand its HQ in the adjacent building, 557 Broadway presents a modern interpretation of the cast-iron architectural style that defines the historic SoHo neighborhood.<\/em><\/p><\/div>\n<p>Though the office sector continues to face challenges across the country, the Manhattan office market has stood out as the leading bright spot this year. In fact, our <a href=\"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/\" target=\"_blank\" rel=\"noopener\">national office report<\/a> found that office space here commanded the highest asking rate for lease, as well as the highest sale price per square foot. What\u2019s more, sales of office space in New York City added up to the highest year-to-date total through November, when vacancy was among the lowest in the country, and developers were working on the second-largest supply pipeline nationwide.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Scholastic headquarters office in Manhattan encompasses an iconic pair of Broadway buildings that speak volumes to the history of the vibrant and dynamic journey of New York City through time. <\/p>\n","protected":false},"author":48,"featured_media":45465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[37,38,4014,39],"tags":[],"class_list":["post-46290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-real-estate-news","category-deals","category-featured","category-office","wpautop"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ESRT Buys Scholastic Office Building in Manhattan | CommercialCafe<\/title>\n<meta name=\"description\" content=\"Scholastic sells its headquarters office space in Manhattan to ESRT and will continue operations as a tenant at the SoHo property.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialcafe.com\/blog\/scholastic-esrt-sale-leaseback-manhattan-office\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Scholastic &amp; 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