AI startup Modal Labs is respiration new life into Rudin’s troubled Tribeca office tower.
The AI infrastructure supplier signed a 157,000-square-foot lease at 32 Sixth Avenue, an organization spokesperson stated. The deal spans three flooring on the 1.2 million-square-foot workplace tower. Asking hire and the size of the lease weren’t disclosed. The transaction was first reported in CBRE’s October Manhattan workplace report.
Modal plans to relocate from Stellar Administration’s 233 Spring Road in mid-2027. The corporate at present has about 140 staff, with the extra room meant to accommodate future progress.
That progress has already gone into overdrive. In October, Modal introduced a $750 million Collection D funding spherical at a $15.75 billion valuation, lower than 5 months after elevating $355 million in a Collection C.
The lease is a major win for Rudin as it really works to refill a constructing that has struggled with vacancies for the reason that pandemic.
In December 2025, the worth of 32 Sixth Avenue was marked right down to $340 million, a 56 % decline from its $770 million valuation in 2015, in accordance with Morningstar Credit score. Occupancy stood at simply 57 % as of June, in accordance with Fitch Rankings.
The constructing’s tenant roster has thinned in recent times. CenturyLink Communications downsized in 2021, whereas Dentsu Holdings USA additionally diminished its footprint earlier than relocating in August 2025. iHeartMedia division AMFM Working left when its lease expired in 2022.
Rudin has been working to reposition the property whereas navigating its debt. Final yr, the owner secured a four-year extension on its $425 million industrial mortgage-backed securities mortgage, pushing the maturity to November 2029, with two further one-year extension choices. As a part of the settlement, Rudin dedicated $100 million to capital enhancements, together with a renovated foyer, an on-site leasing heart and upgraded ground-floor retail.
Rudin bought the previous AT&T headquarters in 1999 for $150 million and later invested $100 million within the property. The 28-story constructing’s largest tenant is tech firm Telx, which occupies 146,000 sq. ft below a lease that runs by means of 2033. The typical asking hire Downtown was $62.68 per sq. foot in October, in accordance with the CBRE report.
A Rudin spokesperson didn’t instantly reply to remark.
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