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A $300 million art donation to Seattle University has been revealed to be more complex than originally reported.
On Monday, Sotheby’s will begin selling approximately 50 works from the collection amassed by Seattle real estate developer and philanthropist Richard “Dick” Hedreen, previously billed as the “largest art gift ever” to a US university. Hedreen said in September that the sale did not mean the promised gift was falling through. Rather, he suggested, the proceeds would help furnish Seattle University’s new art museum, where the collection was eventually expected to hang.
Records newly reported on by The Seattle Times, however, tell a different story: The works are being sold not to fund the museum, but to pay off a debt secured against the collection — a debt Hedreen says stands between him and fulfilling his pledge to the university.
What was originally framed as a donation, in reality, was 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 set for Seattle University is unclear.
The sale spans an expansive 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 Sotheby’s 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.
A news release from Seattle University 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.”
However, the Seattle Times reported that records show that the “seed funding” was actually provided through the private sale of a de Kooning painting. Estimated in 2024 to be worth $25 million, the work fetched $17 million.
The Sotheby’s sale proceeds will instead go toward paying off an outstanding loan secured against the collection. The borrowing dates to 2012, when Hedreen first pledged several artworks, including a 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 that the Sotheby’s sale is tied to financial pressures in the hotel and real estate markets. Income generated by the company’s properties, he said, is insufficient to repay the loan “in any reasonably foreseeable time frame.”
ARTnews has contacted Sotheby’s for comment.
Richard Hedreen’s son, Guy, said in a statement that his 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. Rather, the auction reflects his commitment to the university “by removing a debt that prevents him from translating his pledge intentions into an outright gift.”
Construction on the new art 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 museum 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 collection that formed the basis of the original commitment.
McClellan added that it had been “reasonable” for the university to expect Hedreen’s loan to be paid off by 2028, when the museum was originally scheduled for completion.