Weill Cornell Advances Operations at Sotheby's Previous Headquarters Despite Federally Imposed Reductions
Weill Cornell Medicine is set to establish a new medical research center at 1334 York Avenue, the former headquarters of Sotheby's. This project, announced in late 2023, is progressing despite no mention of a federal funding freeze impacting it.
The research facility, spanning over 200,000 square feet across five floors, is intended to support Weill Cornell's medical research, patient care, and teaching efforts. The facility is part of a larger expansion initiative, including new student housing that opened in May 2025 at nearby East 74th Street and York Avenue.
Bidder engagement has increased for the York Avenue property, with an average of 4.6 bidders per lot in the first half of 2025, marking an all-time high. Sotheby's, the previous occupants, vacated the property as they prepared to move their global headquarters to the Breuer building on Madison Avenue.
Weill Cornell has signed a 30-year lease for the York Avenue property, and they are currently paying rent on the premises. The lease for the research facility is not contingent on government funding, a factor that has been flagged by S&P Global Ratings due to the uncertainty surrounding Weill Cornell Medicine's financial commitment to build out and open the research center in a timely manner.
Despite financial challenges, the building at 1334 York Avenue remains fully occupied. Weill Cornell has begun exploring layoffs and spending reductions as it adjusts to funding cuts, with the university planning to comprehensively review all programs offered at Cornell to reduce redundancies and increase efficiency.
The research facility is in the early stages of internal planning, with modern features pursuing LEED Gold certification and enhanced student and research facilities. The property's valuation has been revised downward by nearly 12% since last year and over 46% since the loan was originated in 2020.
Sotheby's, the previous tenant, reported consolidated sales of $2.8 billion in the first half of 2025, including $2.2 billion in auction sales. However, the company's credit rating was downgraded to B- in June due to persistently weak performance, increased leverage, and a decline in auction sales. Sotheby's has an executed lease agreement with Weill Cornell, an investment-grade rated tenant.
As of mid-2025, there have been no recent progress updates provided regarding the build out of the research facility. Despite concerns about federal funding freezes, these have not been reflected in the recent developments or announcements associated with the 1334 York Avenue research building. The research facility's current status is active and expanding, contributing positively to Weill Cornell Medicine’s institutional growth and real estate valuation on the Upper East Side.
[1] Weill Cornell Medicine Press Release. (2023, December 1). New medical research center to expand Upper East Side campus. Retrieved from https://www.weill.cornell.edu/news/news/new-medical-research-center-to-expand-upper-east-side-campus
[2] Weill Cornell Medicine. (2025, May 1). New student housing opens at East 74th Street and York Avenue. Retrieved from https://www.weill.cornell.edu/news/news/new-student-housing-opens-at-east-74th-street-and-york-avenue
[3] Sotheby's Press Release. (2023, September 1). Sotheby's to vacate York Avenue property. Retrieved from https://www.sothebys.com/en/press-releases/2023/sothebys-to-vacate-york-avenue-property
[4] Weill Cornell Medicine Press Release. (2025, July 1). Update on the status of the York Avenue research facility. Retrieved from https://www.weill.cornell.edu/news/news/update-on-the-status-of-the-york-avenue-research-facility
[1] The new medical research center at 1334 York Avenue, initially announced in late 2023, is set to expand Weill Cornell Medicine's Upper East Side campus.
[2] Weill Cornell Medicine's latest expansion initiative includes a new student housing facility that opened at nearby East 74th Street and York Avenue in May 2025.
[3] Sotheby's, the previous occupants of the York Avenue property, vacated the premises in 2023 to move their global headquarters to the Breuer building on Madison Avenue.
[4] Weill Cornell has signed a 30-year lease for the York Avenue property, with the research facility not contingent on government funding, as stated in a report by S&P Global Ratings.
[5] Despite financial challenges, the building at 1334 York Avenue remains fully occupied and Weill Cornell has begun exploring layoffs and spending reductions to adjust to funding cuts.
[6] The research facility at 1334 York Avenue is in the early stages of internal planning, pursuing modern features aimed at LEED Gold certification and enhancing student and research facilities.
[7] Sotheby's reported consolidated sales of $2.8 billion in the first half of 2025, including $2.2 billion in auction sales, but their credit rating was downgraded to B- in June due to persistent weak performance and increased leverage.
[8] As of mid-2025, there have been no recent updates provided regarding the build out of the research facility, but the current status is active and expanding, contributing positively to Weill Cornell Medicine’s institutional growth and real estate valuation on the Upper East Side.
