Scholastic Corporation closed a $386 million sale‑leaseback of its 555–557 Broadway headquarters in New York City on December 18, 2025, selling the property to a subsidiary of Empire State Realty Trust, Inc. and immediately leasing the space back under a long‑term agreement that preserves the company’s operational footprint.
The transaction generated roughly $400 million in net proceeds for Scholastic after transaction costs, boosting its cash balance and reducing fixed‑asset holdings. The proceeds are earmarked for a refreshed share‑buyback program, debt reduction, and investment in digital content and technology initiatives that support the company’s shift toward a growth‑oriented, shareholder‑friendly model.
The lease spans 15 years, with an annual base rent of $12 million that escalates 3 % annually. The long‑term commitment allows Scholastic to maintain continuity of its headquarters while freeing up capital that would otherwise be tied to a non‑core asset.
Strategically, the sale‑leaseback aligns with Scholastic’s broader transformation agenda. By monetizing a prime real‑estate asset, the company unlocks liquidity that can be deployed to accelerate content development, expand its digital footprint, and return value to shareholders through buybacks, thereby reinforcing its competitive position in a rapidly evolving publishing landscape.
Empire State Realty Trust’s acquisition of the property fits its strategy of owning and operating high‑quality office assets in New York City, where it has maintained high occupancy rates and positive leasing spreads. Newmark Group, Inc., the exclusive advisor, leveraged its expertise in large‑scale real‑estate transactions to secure favorable terms for Scholastic.
Peter Warwick, Scholastic’s CEO, noted that the sale‑leaseback “unlocks over $400 million in net proceeds, giving us the flexibility to advance our capital allocation priorities, including returning cash to shareholders.” The move underscores Scholastic’s commitment to financial discipline and strategic growth.
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