Real estate firm sues Sotheby’s over sale of its former building
Cushman and Wakefield said it seeks to recover the commission it earned, as well as other damages, fees and costs.
Law and Crime
The real estate firm Cushman and Wakefield has filed a lawsuit against Sotheby’s alleging that the auction house hasn’t paid its $10.2 million commission for the sale of its former building.
Sotheby’s, which acquired the Breuer Building from the Whitney Museum of American Art for about $100 million in 2023, officially moved into its new headquarters in November, a month after it finalized the sale of its former building at 1334 York Avenue to Weill Cornell Medicine.
But Weill Cornell’s longtime broker Cushman and Wakefield, in its April 9 lawsuit filed in New York Supreme Court, said it secured a landmark 30-year lease of the building for the medical school in 2023. The firm said that deal laid the groundwork for the eventual 2025 sale to Weill Cornell for $510 million.
Paid subscribers scan read the full complaint.
Court Documents: Cushman & Wakefield v. 1334 York
Records from New York Supreme Court
Adam Schrader
Cushman and Wakefield said that a commission agreement was signed with 1334 York Avenue LLC, a business entity through which Sotheby’s owned the property, when the lease was executed. That agreement allegedly stated that the brokerage would receive a 2% commission of the total sales price if the building were to be sold during the lease term.
But instead of being told of the sale, which was negotiated directly between Weill Cornell and Sotheby’s, Cushman and Wakefield said it learned of it through news reports.
“Sotheby’s has refused to pay C&W the $10.2 million commission it is owed, choosing instead to retain those funds to address its deteriorating financial condition to the detriment of C&W,” the brokerage said in its lawsuit.
Cushman and Wakefield said it seeks to recover the commission it earned, as well as other damages, fees and costs.
The firm cited news reports which had revealed massive debt, falling commissions and staffing cuts in recent years. It is seeking a jury trial.
Parts of the lawsuit are redacted, including details of previous discussions between Sotheby’s and Cushman and Wakefield, details of the lease negotiations and payments made by the firm that provided “a financial life-preserver to Sotheby's.”
Cushman and Wakefield sent an invoice to Sotheby’s for its commission on October 17, a redacted copy of which was filed as an exhibit to the court. But Sotheby’s sent a letter back on December 2, stating that the commission agreement did not apply to the sale.
“This lawsuit is baseless and completely meritless,” a Sotheby’s spokesperson said in a statement to The Real Deal. “We will defend ourselves vigorously in court and we are confident that when the facts come out, we’ll be vindicated.”
Earlier this month, a lawsuit against Sotheby's brought by collector Charles C. Cahn Jr. was revealed to have been permanently ended without a ruling or public explanation.
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