Sotheby’s has refinanced its New York and London offices with $685 million in loans funded by Barclays and Prima Capital Advisors.
A team from Newmark’s Manhattan-based Debt & Structured Finance division arranged the funding. Dustin Stolly and Jordan Roeschlaub, vice chairmen and co-heads of the team, along with senior managing directors Chris Kramer and Nick Scribani, and associate Dominick Calisto negotiated a $483 million floating rate senior loan for the refinancing of Sotheby’s NY Headquarters located at 1334 York Avenue .
The team also arranged a $202 million senior loan for the refinancing of Sotheby’s London location at 34-35 New Bond Street.
The auction house originally acquired the York Street property in 2000 and undertook a full scale redevelopment, adding six stories and completing an interior redesign. Sotheby’s completed a sale leaseback with RFR Realty in 2003 and then bought the property back in 2009.
Last year, Sotheby’s was acquired by Patrick Drahi’s BidFair, and the 506,000 s/f glass and granite building is considered 100 percent owner occupied. As part of the acquisition, Sotheby’s structured a new, long-term, triple net lease at the property, enforcing what it called its dedication to the location of the global headquarters.
As the home to Sotheby’s sole North American auction salesroom, principal North American exhibition space, and Sotheby’s Financial Services, the property features state-of-the-art gallery, auction and office space throughout. Ground floor retail includes Sotheby’s Wine and Sant Ambroeus Coffee Bar.
In London, Sotheby’s has become a landmark of New Bond Street, where it has been since 1917. Located in the city’s Mayfair district, Sotheby’s auctions continue to attract an international audience and the London office offers comprehensive services for clients worldwide. Sotheby’s Restaurant, located in the New Bond Street auction house, serves breakfast and various dining food choices.
The company’s 2019 merger agreement with BidFair provides Sotheby’s with the opportunity to accelerate a program of growth initiatives.