The Real Deal New York

Scholastic closes on $255M Soho HQ buy

Publisher a tenant in 555 Broadway since 1992 -- and owns adjacent building

March 06, 2014 06:45PM

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From left: 555 Broadway and a Scholastic truck

From left: 555 Broadway and a Scholastic truck

Book publishing company Scholastic has closed on its purchase of its U.S. headquarters at 555 Broadway for $255 million, according to public records filed with the city today.

Scholastic purchased the 325,000-square-foot property from South Carolina-based landlord ISE America. ISE had owned the building since 1996, public records show.

Scholastic had been a tenant at the building since 1992 and has owned the adjacent building, at 557 Broadway, since 2010, according to its website.

The company paid $25.5 million for 557 Broadway, records show.

The purchase  of 555 Broadway “will increase our cash flow and will also provide us with the flexibility to further monetize this valuable space in the Soho neighborhood,” Richard Robinson, Scholastic’s CEO said in an earnings call in December.

“We expect to fund the $255 million purchase with cash on hand and borrowings under our committed credit facility,” he said.

It was not clear whether or not a broker had been involved in the deal. A spokesperson for Scholastic was said the person who dealt with the purchase was not immediately available to comment.

ISE could not be reached. – Katherine Clarke

  • ELLIMAN575MADISON

    ZAR ?!?!?!

  • marknroses

    good news. this is how companies stay in the city instead of being priced out. this should help keep a piece of Soho’s creative flairs.

  • WannaBeLandlord

    My good friend’s step dad, William Bretschger did all the development work for this building on behalf of Scholastic. His work is so good at 557 Broadway that Scholastic hired him to do their Ontario, Florida, New Jersey, and Arkansas offices.

  • Jeff Zee

    ELLIMAN575MADISON what do you mean?

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