Weill Cornell Medicine has agreed to buy Sotheby’s property in Manhattan's Upper East Side at 1334 York Avenue for $510 million in a sale-leaseback transaction.
Bloomberg reported that the deal will involve a relocation to 945 Madison Avenue. Additionally, the move expands Weill Cornell's main campus, situated at the intersection of York Avenue and East 68th Street.
Sotheby’s will lease back office space in the building. Part of the proceeds will be used to renovate the space, pay back debt and invest in the art and luxury firm's core business, according to a statement cited by Bloomberg.
“We’ll now have a best-in-class front of house, back of house and staff working environment, all aligned with our brand and client expectations, and all at a lower net annual cost," Sotheby’s said.
From Weill Cornell's point of view, the patient care provider said that the move extends its clinical service reach to more New Yorkers. Since 2023, Weill Cornell has leased space at 1334 York.
The 10-story building has served as Sotheby’s headquarters since 1980. It was refinanced in 2020 through a five-year loan worth about $484 million. JLL represented Weill Cornell, while CBRE acted on behalf of Sotheby’s on the transaction.
In New York, Weill Cornell has 173 locations.
For Manhattan's office sector during the third quarter, leasing activity surged by 20.4 percent from the previous three months to 10.6 million square feet, according to a report from Savills. The CRE firm said that the borough is now on pace for its strongest leasing year since 2014.
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