A planned research facility by Weill Cornell Medicine at 1334 York Avenue—the former headquarters of Sotheby’s—is moving forward despite a federal funding freeze that has disrupted hundreds of research projects across the university. A story published on July 22 in Crain’s, citing data from S&P, claimed the auction house was “exposed to the turmoil” due to the risk that Weill Cornell may be forced to tighten their belts.
In a statement to ARTnews, a spokesperson for Weill Cornell confirmed that “development plans at 1334 York are in progress and ongoing,” though they acknowledged that internal planning is still in its early stages. The leased space, which comprises more than 200,000 square feet across five floors of the building, is intended to support Weill Cornell’s medical research, patient care, and teaching efforts. The spokesperson also noted that “the lease is not contingent on government funding” and that the facility was “never intended to be solely supported by government funding.”
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The comments come amid widespread uncertainty over fate of America’s cultural and science landscape under President Donald Trump, following an abrupt freeze in federal grants and contracts earlier this year. In an internal statement circulated by Cornell University in May, the institution acknowledged receiving “more than 75 stop work orders from the Department of Defense” tied to research in areas ranging from cancer treatments to space communications. The statement added that while Cornell could not confirm reports that over $1 billion in federal grants had been frozen, the affected projects “are profoundly significant to American national defense, cybersecurity, and health.”
Weill Cornell signed a 30-year triple net lease for the York Avenue property in 2023, backfilling space vacated by Sotheby’s as the auction house prepared to move its global headquarters to the Breuer building on Madison Avenue. At the time, the lease was viewed as a stabilizing development for 1334 York, a 10-story, 506,000-square-foot tower owned by Sotheby’s since 1980.
But a recent report from S&P Global Ratings revised the property’s valuation downward by nearly 12% since last year—and by more than 46% since the loan was originated in 2020—citing heightened risk tied to both the art auction house and its new tenant. S&P flagged “uncertainty surrounding Weill Cornell Medicine’s ongoing financial commitment to build out and open its new medical research center at the subject property in a timely manner,” and noted that the build out had not yet been completed, with no recent progress updates provided.
Sotheby’s earlier this month reported consolidated sales of $2.8 billion in the first half of 2025, including $2.2 billion in auction sales. The auction house achieved an 85% sell-through rate—up 4% from the same period last year—and saw increased bidder engagement, averaging 4.6 bidders per lot, an all-time high, leading to “increased profitability compared to the first half of 2024.”
As of the most recent trustee filing, Weill Cornell was paying rent on the space and Sotheby’s over email told ARTnews that “Sotheby’s has an executed lease agreement in place with Weil Cornell, an investment-grade rated tenant.”
A separate report by Evercore ISI, cited by Crain’s, estimated that Weill Cornell received more than $300 million in NIH funding in 2024 but is projected to receive less than half that amount this year. However, the university has reportedly begun exploring layoffs and spending reductions as it adjusts to the cuts, however, there’s no evidence if or how the planned facility at York Avenue will be effected.
Last month the university said there were already plans to “comprehensively review” all programs offered at Cornell to reduce redundancies and increase efficiency, according to The Cornell Daily Sun.
The federal funding issues have coincided with financial challenges at Sotheby’s, whose credit rating was downgraded to B- in June. S&P cited “persistently weak performance,” increased leverage, and a decline in auction sales. Sotheby’s, which recorded $6 billion in global sales in 2024, has disputed the characterization, with a spokesperson telling Crain’s New York that the company remains in a “strong financial position.”
Despite these headwinds, the building remains fully occupied, according to servicer reports, and Weill Cornell reaffirmed that it “has a lease agreement for 1334 York Avenue to support our mission.”