EliseAI, a startup using artificial intelligence to automate workflows and operations for the healthcare and housing sectors, is expanding its Manhattan footprint months after closing a $250 million funding round led by venture capital firm Andreessen Horowitz.
EliseAI signed a 109,000-square-foot, 10-year lease at 401 Fifth Ave., a landmarked eight-floor property spanning 240,000 square feet on the corner of 37th Street, the company said Tuesday in a statement. EliseAI will be moving from a few blocks south at 33 E. 33rd St.
A spokesperson said the expansion comes as New York-based EliseAI is in "hypergrowth mode" following the fund raise. The new space will be more than 1.5 times the size of its current space, where EliseAI has already been expanding recently, a separate spokesperson told CoStar News.
In August, Andreessen Horowitz, also known as a16z, led the $250 million Series E funding round, which also had participation from new investor Bessemer Venture Partners and existing investors Sapphire Ventures and Navitas Capital. EliseAI said at the time it was “actively hiring” across all departments and growing its office hubs also in San Francisco, Boston and Chicago. The startup helps medical practices with patient scheduling, intake and front-desk operations while assisting property managers with leasing, maintenance and resident engagement.
“Choosing our new home here was critical due to our strong in-person culture and our commitment to creating a truly exceptional experience for our people to collaborate and do their best work,” said Minna Song, EliseAI co-founder and CEO, said in the statement. “The new 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.”
A former Tiffany & Co. flagship building, 401 Fifth, designed in 1905 by McKim, Mead & White and a “nationally recognized Stanford White landmark,” is distinguished by its Italian Renaissance facade and historic Fifth Avenue presence, EliseAI said. The property, owned by The Chetrit Group, is just south of Amazon’s Manhattan headquarters at 425 Fifth Ave.
The lease comes as a slew of AI firms expanding in the city have helped create a leasing resurgence, boosting top-dollar deals last year to record highs, brokerage data has shown. In another example of AI-related demand in New York, RillaVoice, an app that records and transcribes voice conversations to help train sales teams, signed one of Brooklyn’s largest office leases in the past year.
Anthropic, the San Francisco AI firm behind the chatbot Claude, is also seeking 250,000 to 450,000 square feet of office space in an expansion from its current footprint at 155 Avenue of the Americas in lower Manhattan, Bloomberg reported Tuesday. Anthropic didn’t immediately respond to a CoStar News request seeking comment.
For the record
EliseAI was represented by Evan Margolin, Valentin Stobetsky, Calum Waddell, Will McGarry and Hale King from JLL in the transaction. The Chetrit Group was represented by Brian Waterman, David Waterman and Alex Kesseler from Newmark, who serve as the exclusive leasing agents for the property.