Newmark Advises Scholastic on $386 Million Sale-Leaseback of New York City Headquarters

Rhea-AI Summary

Scholastic (Nasdaq: SCHL) completed a $386 million sale-leaseback of its New York City headquarters at 555–557 Broadway to a subsidiary of Empire State Realty Trust (NYSE: ESRT) on December 19, 2025. Scholastic sold the property and signed a 15-year lease with extension options, reducing its overall footprint while retaining long-term access to the space. Empire State Realty Trust will assume responsibility for ongoing property maintenance and capital improvements. The transaction is expected to generate significant net proceeds for Scholastic. Newmark (Nasdaq: NMRK) served as exclusive real estate advisor to Scholastic, led by Adam Spies, Joshua King and Avery Silverstein, with support from Adam Doneger and Marcella Fasulo.

Positive

• $386 million sale-leaseback proceeds
• 15-year lease preserves long-term occupancy
• Buyer ESRT assumes maintenance and capital improvements

Negative

• Scholastic reduced its overall footprint
• 15-year lease creates long-term rental obligation

Key Figures

Sale-leaseback value $386 million Sale-leaseback of Scholastic’s New York City headquarters

Lease term 15-year lease Long-term leaseback for Scholastic at 555–557 Broadway

Market Reality Check

$6.47 Last Close

Volume Volume 1,345,714 is 8% above the 20-day average of 1,249,222. normal

Technical Shares at $6.72 are trading below the 200-day MA of $7.57 and well under the $11.12 52-week high.

Peers on Argus

ESRT was down 0.74% with slightly elevated volume, while key diversified REIT peers like BNL, GNL, SAFE, and AHH also showed declines between -0.52% and -1.8%, indicating broader sector softness but no confirmed momentum cluster.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Sustainability milestone	Positive	+1.6%	Empire State Building earned LEED v5 Platinum certification recognition.
Dec 02	Property acquisition	Positive	-2.0%	Agreed to acquire the Scholastic Building in SoHo for all-cash consideration.
Dec 02	Counterparty sale-leaseback	Positive	-2.0%	Scholastic outlined sale-leasebacks including Broadway sale to an ESRT subsidiary.
Dec 01	Retail leasing update	Positive	-2.0%	Announced new Williamsburg retail leases for HOKA and Tecovas on N. Sixth Street.
Nov 12	Office lease expansion	Positive	-0.1%	GLG signed an expansion lease at One Grand Central Place, increasing space.

Pattern Detected

Recent property and leasing announcements often saw modest negative next-day moves near -1.99%, with only the LEED v5 Platinum milestone coinciding with a positive reaction.

Recent Company History

Over the last several weeks, ESRT has reported a series of asset and leasing milestones. On Nov 12, it expanded GLG’s footprint at One Grand Central Place. In early December, it signed new Williamsburg retail leases and agreed to acquire the Scholastic Building for $386 million. On Dec 9, the Empire State Building achieved LEED v5 Platinum. These updates frame today’s sale-leaseback news as part of a broader capital allocation and leasing strategy.

Market Pulse Summary

This announcement highlights Newmark’s advisory role in Scholastic’s $386 million sale-leaseback of its New York City headquarters to an ESRT subsidiary, with a 15-year lease and ongoing occupancy for Scholastic. For ESRT, it connects to a string of recent property and leasing milestones and follows a sizable buyback authorization and steady revenue reported in recent 10-Q filings. Investors may track execution on leasing, capital allocation, and future updates on this asset.

Key Terms

sale-leaseback financial

"served as exclusive real estate advisor to Scholastic... on the $386 million sale-leaseback of its New York City headquarters"

A sale-leaseback is a deal where an owner sells an asset—commonly real estate or equipment—to another party and immediately rents it back so they can keep using it. For investors, it matters because the seller converts a fixed asset into cash without disrupting operations, which can boost liquidity or pay down debt but also creates ongoing lease payments and long-term obligations that affect cash flow and the balance sheet.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 19, 2025 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark"), a leading commercial real estate advisor and service provider to global corporations, institutional investors, and owners and occupiers, announces the Company served as exclusive real estate advisor to Scholastic Corporation (Nasdaq: SCHL) on the $386 million sale-leaseback of its New York City headquarters located at 555–557 Broadway. Newmark Co-Head of Capital Markets Adam Spies, Executive Vice Chairman Joshua King and Executive Managing Director Avery Silverstein represented Scholastic in the transaction, with support from Executive Vice Chairmen Adam Doneger and Marcella Fasulo.

Under the terms of the transaction, Scholastic sold the property to a subsidiary of Empire State Realty Trust, Inc. (NYSE: ESRT) 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.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2025, Newmark generated revenues of over $3.1 billion. As of September 30, 2025, Newmark and its business partners together operated from approximately 170 offices with over 8,500 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What did Scholastic announce about the 555–557 Broadway transaction (SCHL) on December 19, 2025?

Scholastic completed a $386 million sale-leaseback of 555–557 Broadway and signed a 15-year lease with extension options.

Who bought Scholastic's NYC headquarters and what is their ticker?

A subsidiary of Empire State Realty Trust (NYSE: ESRT) purchased the property.

How will the sale-leaseback affect Scholastic's cash position (SCHL)?

The transaction is expected to generate significant net proceeds for Scholastic.

What responsibilities does ESRT assume after buying Scholastic's building?

Empire State Realty Trust will assume responsibility for ongoing property maintenance and capital improvements.

How long is Scholastic's lease at 555–557 Broadway after the sale (SCHL)?

Scholastic entered a 15-year lease with extension options.

Which firm advised Scholastic on the sale-leaseback and who led the deal?

Newmark (Nasdaq: NMRK) served as exclusive advisor, led by Adam Spies, Joshua King, and Avery Silverstein.