The Real Deal New York

Health-tech startup inks lease at Equity Office’s 114 West 41st 

Quartet Health grabs 32K sf following $40M Series B fundraising round

April 27, 2016 04:28PM
By Rich Bockmann

Jason Schwartzenberg with 114 West 41st Street near Bryant Park and a rendering of the building's amenity space

Jason Schwartzenberg, 114 West 41st Street and a rendering of the building’s amenity space

Quartet Health, a health-tech startup that’s in expansion mode after a $40 million funding round lead by Google’s venture arm, just inked a lease for 32,000 square feet of office space near Bryant Park.

The two-year-old startup, which employs big data to help doctors and patients coordinate care, is expanding from 3,500 square feet on 34th Street near Herald Square to 32,000 square feet at Equity Office’s 114 West 41st Street.

The asking rent for the space was not available, but asks on the building’s middle floors are reportedly in the mid-$70s per square foot.

Quartet recently completed a $40 million Series B round of funding led by GV, the recently renamed venture capital arm of Google’s parent company Alphabet. With the new shot of capital, the company plans to expand its team of 60 employees to 100, Healthcare IT News reported.

The growing startup is relocating from 45 West 34th Street, a roughly 150,000-square-foot building principals at EVO Real Estate control under a 49-year ground lease with the estate of Sol Goldman.

Quartet will move immediately to the fourth floor at the 22-story, 350,000-square-foot building, located between Sixth Avenue and Broadway, while its space on the fifth floor gets built out.  Then, it will switch spaces as it builds out the fourth floor, eventually growing into both spaces.

Jason Schwartzenberg and Daniel Santagata at JLL represented the tenant, while Erik Harris and Scott Klau of Newmark Grubb Knight Frank negotiated on the landlord side.

“Equity Office worked with us to create a structure that enables Quartet Health to accommodate its rapid growth in a highly efficient manner,” Schwartzenberg said. “The occupancy schedule at 114 West 41st Street matches the needs of Quartet’s personnel growth, which is expected to increase significantly by the end of 2016.”

Equity Office is a wholly-owned subsidiary of the Blackstone Group, which purchased the building in late 2014 from Leon Charney’s L.H. Charney & Associates for $165.7 million and proceeded to renovate the lobby and add a tenant amenity center.

Quartet joins another digital health care startup in the building, ContextMedia: Health, which recently signed a lease for more than 15,000 square feet on the 10th Floor.

Other tenants in the building include the Tzell Travel Group, the advertising agency SpotCo and the asset-management-and-leasing platform VTS, which reportedly inked a lease for shy of 16,000 square feet earlier this year.

Earlier last year the Blackstone Group made a $3.3 million investment in VTS, valuing the cloud-based startup at $35 million.

The building has a little more than 111,000 square feet of space available, according to CoStar.

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