Multifamily AI Firm Signs Lease in Midtown Manhattan

In its bid to revolutionize the multifamily industry with artificial intelligence, EliseAI is obtaining traditional office space in Midtown Manhattan.

The AI firm centered on housing and health care signed a lease for 109,000 square feet at the Chetrit Organization’s 401 Fifth Avenue, the Commercial Observer reported. EliseAI will occupy approximately half the building when it relocates from 33 East 33rd Street.

The lease is for 10 years. Asking rent at the property is $80 per square foot, according to Newmark.

The brokerage’s Brian Waterman, DavidWaterman and Alex Kesseler represented Chetrit in the lease. A JLL team including Evan Margolin, Valentin Stobetsky and Calum Waddell represented EliseAI.

In a statement, EliseAI co-founder Minna Song said the “space will let us further scale our New York team, contribute to the city’s technology ecosystem and build the next chapter of AI in housing and healthcare.”

EliseAI’s most prominent product is an automation platform that aims to streamline leasing operations across the multifamily sector. As of August, more than 500 owners and operators have tried out EliseAI’s platform.

In May, the Chetrit Organization — led by Juda and Michael Chetrit — extended its CMBS loan at 393-401 Fifth Avenue by 30 months. The $95 million loan held by Rialto entered special servicing in 2024 for imminent maturity default, according to Trepp. The Chetrit Organization kicked in additional capital to close the deal.

At the time of the extension, the two eight-story office and retail buildings at 393-401 Fifth Avenue were vacant. American Eagle vacated its 200,000-square-foot lease, but the retailer is still making payments until the expiration of its lease this year.

Manhattan office leasing reached pre-pandemic levels in the fourth quarter, posting its strongest quarter since late 2019 with 11.9 million square feet in leases, according to Colliers. That contributed to a yearly total of nearly 42 million square feet for the highest mark since 2019.

— Holden Walter-Warner