Empire State Realty Trust, Inc. has closed on the disposition of 250 W. 57th St., a 540,000-square-foot office tower, in a transaction valued at $275 million. The consideration includes the buyer’s assumption of $180 million of existing mortgage debt on the property. Published reports cited in the company announcement identified the buyer as Namdar Realty, although the buyer was not named in the brief released by the real estate investment trust.
The sale of 250 W. 57th St. is part of Empire State Realty Trust’s broader capital recycling strategy. The REIT noted that transaction proceeds are being directed toward its previously announced December 2025 acquisition of 130 Mercer St. According to the company, structuring the transaction in this manner allows it to redeploy capital without recognizing a taxable gain, aligning with its stated objective of enhancing portfolio quality while managing tax efficiency.
Empire State Realty Trust emphasized that the sale supports its ongoing effort to shift capital into what it characterizes as high-quality assets with long-term cash flow growth prospects. While specific leasing metrics, occupancy figures, and tenant details for 250 W. 57th St. were not disclosed, the REIT positioned the disposition as consistent with its long-term investment and portfolio optimization strategy rather than as a one-off event.
Newmark advised on the sale of 250 W. 57th St., with a team comprising Adam Spies, Josh King, Avery Silverstein, and Ben Lushing representing Empire State Realty Trust. The firm acted as the sales broker in marketing the office tower and negotiating transaction terms with the purchaser, according to the company’s announcement.
In a related move, Empire State Realty Trust also completed the acquisition of the land underlying two of its existing office assets: 111 W. 33rd St. and 1400 Broadway. Prior to this transaction, the REIT held these properties under ground lease structures with remaining terms of approximately 51 years and 38 years, respectively. The aggregate purchase price for the fee interests in the two land parcels was $110 million.
By purchasing the underlying land, Empire State Realty Trust converts long-dated ground lease positions at 111 W. 33rd St. and 1400 Broadway into full fee ownership interests. The company indicated that this step, together with the 250 W. 57th St. sale and capital redeployment into 130 Mercer St., reflects its strategy of targeting assets it believes can support durable, long-term cash flow growth across its portfolio.
