Scholastic entering lease-back agreement for Jefferson City distribution center

COLUMBIA, Mo. (KMIZ)

Scholastic is selling its headquarters in New York and its distribution center in Jefferson City through a lease-back deal, according to a press release from the company’s website.

A leaseback occurs when a business sells a location to another party and leases it from the buyer.   

Scholastic is selling the Jefferson City location “to funds managed by affiliates of Fortress Investment Group ("Fortress") for gross proceeds of $95 million in cash,” the release says. Its New York location is being sold to Empire State Realty Trust for $386 million, the release says.

The Jefferson City distribution will have a 20-year lease with two 10-year extensions available, the release says.

“The Board ultimately determined that these transactions offered a compelling and attractive opportunity to enhance Scholastic's balance sheet and maximize value for shareholders, while streamlining Scholastic's footprint with minimal disruption to operations and employees,” the release says.