Sotheby’s has reportedly sold its New York City headquarters to Weill Cornell Medicine in a US$510 million (A$771.7 million) deal, marking a major real estate shift for the auction house.
The building at 1334 York Avenue on Manhattan’s Upper East Side, one block from the East River, has been home to Sotheby’s since 1980.
As part of the agreement, Sotheby’s will lease back space in the 10-floor tower while relocating its core operations to the Breuer building at 945 Madison Avenue, the former home of the Whitney Museum of American Art.
In a statement cited by Bloomberg, Sotheby’s said the transaction would allow it to “further reduce debt and invest even more fully in our core business, including renovating our leased office space at York”.
The auction house added that the new arrangement would provide a “best-in-class front of house, back of house and staff working environment … all at a lower net annual cost”.
Jones Lang LaSalle’s David Giancola, Geoff Goldstein and Steve Klein represented Weill Cornell, while CBRE’s Doug Middleton and Mary Ann Tighe advised Sotheby’s.
Weill Cornell confirmed the purchase, noting that the deal provided them with a real estate asset for “materially the same net cost as leasing”.
Weill Cornell, which has leased space at 1334 York since 2023, said the acquisition extends its main campus, located one block south, and gives the institution the flexibility to expand clinical services.
“The expanded footprint will enable the institution to consider multiple uses, including expanding clinical services to connect more New Yorkers to its network of exceptional physicians,” a spokesperson said.
Sotheby’s had refinanced the York Avenue property in 2020 with a US$484 million five-year loan.
The sale marks the latest move in its broader strategy to optimise its operations and real estate portfolio while aligning with long-term cost efficiency goals.
