The Real Deal New York

Dropbox takes 31K sf at Two Trees’ 50 West 23rd Street

Landlord in negotiations to lease remaining 80K sf: report

January 04, 2016 07:59AM

50 West 23rd Street

50 West 23rd Street in the Flatiron District (inset: Two Trees’ Jed Walentas)

UPDATED: 2:45 p.m., Jan. 4: Dropbox, the $10 billion cloud-computing company, is moving across the Flatiron District to a much larger space at Two Trees Management’s 50 West 23rd Street.

The firm signed a five-year lease to take 31,000 square feet at the 13-story building, the entire fourth floor. The deal gives Dropbox the option to renew for an extra five years when the lease expires.

The asking rent at the building is $72 per square foot, Crain’s reported. The company is moving from a 12,000-square-foot space at the Hakimian Organization’s 33 West 18th Street.

Two Trees brought the 340,000-square-foot 50 West 23rd Street back in 2010 for $129.5 million. The firm made $25 million in renovations over the last three years, including upgrades to the lobby, a new heating and ventilation system and an 11,000-square-foot roof deck.

Avison Young’s Martin Cottingham, Michael Gottlieb and Anthony LoPresti represented Dropbox in the deal.

The online music platform Soundcloud also makes its home at the building. It took 43,700 square feet there in January, signing a five-year lease.

Two Trees’ Jed Walentas told Crain’s he’s in negotiations with another tenant who is looking to take the remaining 80,000 square feet of space at the building. [Crain’s]Ariel Stulberg

The names of the brokers representing Dropbox were added to this post.