Sotheby's Hedreen Sale to Repay Debt, Not Fund Seattle Museum

Sotheby's will begin selling roughly 50 works on Monday from the collection of Seattle developer Richard "Dick" Hedreen — and the proceeds, according to records reported by The Seattle Times, will repay a loan rather than furnish the university museum the gift was meant to endow.

The sale was once billed as the "largest art gift ever" to a US university: a $300 million donation to Seattle University. Hedreen said in September that the auction did not mean his promise was falling through. The proceeds, he suggested, would help furnish the university's new art museum, where the collection was eventually expected to hang.

The records tell a different story. The works are being sold to pay off a debt secured against the collection — a debt Hedreen says stands between him and fulfilling his pledge.

What was actually promised?

What was framed as a donation was, in reality, a pledge. Hedreen — whose firm R.C. Hedreen Co. owns the Grand Hyatt among other Seattle properties — retained the right to buy and sell works from the collection until the gift was finalized. The Sotheby's auction is expected to generate at least $100 million across a series of sales. As of writing, the overall value of the artwork still headed to Seattle University is unclear.

A Seattle University news release stated: "Hedreen has given the university the renowned Hedreen Collection (named for himself and his late wife Elizabeth 'Betty' Ann Petri Hedreen, a Seattle University alumna) valued at $300 million, along with $25 million in seed funding to develop the museum."

The seed funding, the Seattle Times reported, actually came from the private sale of a de Kooning painting. Estimated in 2024 at $25 million, the work fetched $17 million.

Why is the collection being sold?

The auction proceeds will service an outstanding loan secured against the art. The borrowing dates to 2012, when Hedreen first pledged several artworks — including pieces by Francis Bacon, de Kooning and David Hockney — as collateral for a Goldman Sachs loan. In 2025, that financing was replaced with a Bank of America loan secured by approximately 44 major artworks.

R.C. Hedreen Co. President David Thyer confirmed the sale is tied to financial pressures in the hotel and real estate markets. Income from the company's properties, he said, cannot repay the loan "in any reasonably foreseeable time frame."

Hedreen's son, Guy, said in a statement that the family's "commitment to Seattle University has not changed." His father, Guy added, "is not selling works from his collection in order to spend money on himself" or his business. The auction, he argued, reflects his commitment to the university "by removing a debt that prevents him from translating his pledge intentions into an outright gift."

ARTnews has contacted Sotheby's for comment.

What's on the block?

The sale spans a broad sweep of art history. Works by Willem de Kooning, Rashid Johnson, Amy Sherald and Jonas Wood will be offered alongside Old Masters by Bronzino, Jacopo Pontormo, Élisabeth Vigée Le Brun and Thomas Gainsborough.

Leading the offerings is Roy Lichtenstein's Reflections on "Painter and Model" (1990), estimated at $20 million to $30 million. Cecily Brown's 12-foot-wide Untitled (Shipwreck) (2017), estimated at $7 million to $10 million, is another highlight.

What happens to the museum?

Construction on the new museum, originally scheduled to begin this past summer, has been pushed to 2027 as the project awaits permits. Designed by local architect Tom Kundig, the building is intended to permanently house the Hedreen collection alongside rotating exhibitions and academic programming.

Scott K. McClellan, Seattle University's vice president for university affairs, said the school continues to believe the collection "presents a significant opportunity for the university, community and our broader vision for the arts." He reiterated the "shared intention of Mr. Hedreen and the university" that Seattle University ultimately receive a collection of museum-quality works commensurate with the original commitment.

McClellan added it had been "reasonable" for the university to expect the loan repaid by 2028, when the museum was originally scheduled for completion. Whether roughly 50 fewer works still constitutes a $300 million gift is now the question both parties will have to answer in public.