Scholastic Sells HQ, Distribution Facility -
Scholastic has acted on its promise to sell its two largest real estate holdings and then lease back part of the properties. The two sales—for its headquarters on Broadway in New York City and its primary distribution facility in Jefferson City, Mo., are expected to generate estimated net proceeds of $401 million. The sales are expected to close before the end of the year.
According to the Scholastic announcement, it will sell 555-557 Broadway to a subsidiary of Empire State Realty Trust (ESRT), for gross proceeds of $386 million in cash, and sell its Jefferson City facility to funds managed by affiliates of Fortress Investment Group for gross proceeds of $95 million in cash. Upon closing of each of these transactions, Scholastic will enter into long-term leases to continue operations at both locations.
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