Patrick Drahi’s Sotheby’s borrows $252M from BNP Paribas for auction house HQ in Lenox Hill

By Adam Pincus

Patrick Drahi’s Sotheby’s through the entity 1334 York, LLC as borrower signed a loan agreement with lender BNP Paribas valued at $252 million for the auction house’s headquarters, an office tower at 1334 York Avenue in Lenox Hill. The deal closed on October 3, 2019 and was recorded on October 10, 2019.
The property contains a total of 407,259 square feet of built space.
The average loan per buildable square foot is $619.
Drahi, a billionaire telecom executive and art collector, closed on the $3.7 billion purchase of auction house Sotheby’s on October 3, the same date as this loan was closed.

The total amount of debt on the building has been cut from a high of $325 million in 2015, right after Sotheby’s signed a 15-year lease with itself at the building, down to $278 million in 2017 and now $252 million in 2019, for a total cut of 22 percent. Sotheby’s had sought to sell the building in 2016.

The last time the property sold was February 6, 2009, when the auction house bought it from RFR Holding for $370 million, after signing a contract in January 2008.

Sotheby’s announced in May that it had spent $55 million on an expansion and redesign of its headquarters building.

BNP Paribas led the $2 billion in financing for Drahi’s $3.7 billion purchase of Sotheby’s which took the auction company private after 31 years on the New York Stock Exchange.
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on September 4, 2014.
Over the past five years, there have been 22 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 22 renovation/alteration projects (A2) applied for with a total estimated value of $20,059,535.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.

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