The troubled auction house will lease the building back for a period of up to 40 years, which includes renewals. Sotheby's expects to make a £14.8 million ($24 million) profit on the building, which will be amortized over the initial 20 years of the lease.
Sotheby's spent $150 million when it bought and renovated the property in 2000.
Proceeds from the deal will go towards cutting debt and funding the £12.4 million ($20 million) fine levied by the European Union for anti-competitive behaviour in the auction market.
Bill Ruprecht, Sotheby's President and Chief Executive Officer said: "The cash proceeds from the sale of our York Avenue headquarters in New York have enabled us to pay down £61.8 million ($100 million) in short-term debt and fund the European Union antitrust fine, thereby greatly strengthening our balance sheet."
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