Sotheby’s ups debt by $172M to $424M for headquarters in Lenox Hill

Sotheby’s through the entity 1334 York, LLC as borrower signed a loan agreement with lender Barclays Capital Real Estate Inc. valued at $423.5 million for 1 parcel, including the tax class office building with commercial with seven to 19 stories (O6) at 1334 York Avenue in Lenox Hill. The deal closed on September 29, 2020 and was recorded on October 5, 2020.
The property contains a total of 407,259 square feet of built space.
The average loan per buildable square foot is $1,040.
Sotheby’s obtained $171.5 million in new debt through a gap loan. At the same time, Sotheby’s signed a 15-year ground lease with its ownership entity that includes options for three consecutive 10-year extensions. The last time the property sold was October 3, 2019, when Peter Drahi took control of Sotheby’s and this building. The building was valued at $565 million in that transaction.
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 24 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 24 renovation/alteration projects (A2) applied for with a total estimated value of $20,174,535.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link