Erez Asset Management Acquired Empire State Realty Stake

The firm purchased a 5.8% stake in the real estate trust for $43 million, prompting a rise in share prices.

Updated on Oct. 7, 2026 in Commercial

Bold vector illustration of a limestone skyscraper peak in teal and cream, representing real estate market investment. — Erez Asset Management acquired a 5.8% stake in Empire State Realty Trust for $43 million, a move that sent share prices higher on Tuesday. AI Illustration. Upload story photo >

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Erez Asset Management has acquired a 5.8% stake in Empire State Realty Trust for $43 million. Shares of the trust, which owns the Empire State Building, rose 4.7% following the disclosure.

Why it matters

Erez Asset Management believes that Empire State Realty Trust shares are undervalued. The firm has contacted leadership to discuss potential strategic reviews of company assets to boost shareholder value.

Empire State Realty Trust oversees 7.5 million square feet of office space, 800,000 square feet of retail space, and 743 apartment units with an 89.4% occupancy rate. The firm recently wrote down its observation deck value by $166 million.

The players

Erez Asset Management

This investment firm was founded in 2022 by Bruce Schanzer and maintains a focus on acquiring undervalued assets.

Empire State Realty Trust

The company owns significant commercial and retail space in New York City, including the iconic Empire State Building.

Anthony Malkin

He currently serves as the chairman and CEO of Empire State Realty Trust.

Bruce Schanzer

He is the founder of Erez Asset Management and a key figure in the firm's recent investment strategies.

The details

The investment firm, led by founder Bruce Schanzer, aims to push for value-adding changes within the real estate trust. Empire State Realty Trust has seen declining income from its iconic observation deck, which saw net operating income drop to $12.4 million year-over-year.

1961: The Malkin family began owning the Empire State Building.
2022: Bruce Schanzer founded Erez Asset Management.
Q2 2026: ESRT wrote down the observation deck value by $166 million.
October 1, 2026: Erez Asset Management purchased the stake.
October 6, 2026: ESRT stock rose 4.7% following the filing.

Roadmap

This acquisition highlights the aggressive entry of newer investment firms into the established New York commercial real estate landscape. It reflects a broader trend of activist investors seeking to unlock value in legacy portfolios during periods of market fluctuation.

For residents and business owners in New York City, this move could signal forthcoming changes to property management or retail strategies within the trust's extensive portfolio. Tenants of the office and retail spaces may eventually see shifts in building operations or leasing priorities.

The takeaway

Investors often target real estate trusts when they believe underlying asset values are not fully captured by current stock prices. The outcome of this investment will likely depend on how leadership at the trust reconciles the investor's goals with the portfolio's performance.