Newmark Group, a commercial real estate advisor and service provider to global corporations, institutional investors, owners and occupiers, announced the company served as exclusive real estate advisor to Scholastic Corp. on the $386 million sale-leaseback of its New York City headquarters located at 555–557 Broadway. Newmark represented Scholastic in the transaction.
Under the terms of the transaction, Scholastic sold the property to a subsidiary of Empire State Realty Trust and entered into a long-term lease to continue operations at the location, while reducing its overall footprint. The transaction is expected to generate significant net proceeds for Scholastic.
The sale-leaseback features a 15-year lease with extension options. Empire State Realty Trust will assume responsibility for ongoing property maintenance and capital improvements, while Scholastic retains long-term access to the space necessary for its business operations.
