The Real Deal New York

Grovo inks lease for 70K sf at Two Trees’ 50 West 23rd

Workplace training startup to occupy fifth, sixth and 12th floors at Flatiron building

February 24, 2016 05:30PM

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

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

Workplace training startup Grovo signed a 10-year lease for 70,000 square feet at Two Trees Management’s 50 West 23rd Street in the Flatiron District.

The company, which provides clients with online training for employees, will take the entire fifth, sixth and 12th floor. Asking rents at the 13-story, 340,000-square-foot building are north of $70 per square foot.

Grovo is relocating from Cohen Brothers Realty Corporation’s 3 Park Avenue, where it has 29,000 square feet, Crain’s reported.

In 2010, Two Trees bought the property, known as the Jewelcor Building, for $129.5 million. The developer, known for its projects in Dumbo, invested about $25 million to renovate the building, including a lobby upgrade, replacing building systems and adding a 11,000-square-foot roof deck.

“Building off of our success in Dumbo, where we learned that tech tenants need adaptable, open office space, 50 West 23rd Street has attracted top tenants across the industry,” Two Trees’ Jed Walentas told Crain’s.

Colliers International’s Eric Ferriello and Robert Tunis represented Grovo, and Dan Conlon and Elizabeth Bueno, in-house leasing executives at Two Trees, represented the landlord in the deal.

Last month, Dropbox, the $10 billion cloud-computing company, signed a five-year lease to take 31,000 square feet at the building, and SoundCloud, an online audio platform, inked a five-year, 43,700-square-foot lease there last June. Hometeam, a provider of caregivers and nurses for senior citizens, subleased 22,000 square feet from SoundCloud in November.

With Grovo lease, the building is now 90 percent occupied, according to Two Trees. [Crain’s]Dusica Sue Malesevic

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