The centuries-old fine art auction house Sotheby’s has refinanced the 10-story property it headquarters and owns on Manhattan’s Upper East Side with a $325m loan from HSBC and the Industrial and Commercial Bank of China.
The loan takes out a previous securitized loan, part of Bank of America’s BACM 2005-4 securitization, which had an original principal balance of $235m. City property records confirm that the deal closed earlier this month.
The banks plan to syndicate the new 49-month loan, which was originated at 225 bps over the one-month libor and carries a fixed-rate for the first two years, according to Real Capital Analytics.
RFR Realty in June 2005 acquired a 90 percent stake in the property, but Sotheby’s bought the property back in February 2009 for $370m, at which point it assumed the $235m BACM 2005-4 loan.
Just over two years ago, in June of 2013, Sotheby’s was angling to sell the property once again and hired both Eastdil Secured and Jones Lang LaSalle to market the property; but the sale never materialized.
The glass and granite structure, taking up the entire eastern blockfront between East 71st and 72nd streets, was built in 1925 as a cigar factory. Beginning in 1949, it served as a Kodak warehouse. Sotheby’s first occupied the building in 1980 and, in 2000, paid just $11m for it and completed a $140m expansion and renovation.