Another artificial intelligence company is establishing itself in Midtown South. Chalk AI, a data platform provider that offers companies infrastructure for delivering data to AI agents, has signed a lease for 26,607 square feet at 43 West 23rd Street from Castro Properties in the Flatiron District. This was announced by the landlord's broker, Okada & Company. The asking rent was $85 per square foot.
This deal marks Chalk AI's second office headquarters in the Flatiron District, following the company's opening of its first branch four years ago at 54 West 21st Street. Chalk AI's new lease means the eight-storey office building, located one block west of the Flatiron Building, is 100 per cent let. This was confirmed by Okada, as an increasing number of AI and tech companies are choosing Midtown South as a location for their offices.
Christopher Okada of Okada & Company, who represented the landlord in the transaction, expressed his delight at the new addition: “We are thrilled to welcome Chalk AI to 43 West 23rd Street and restore the property to full occupancy.” He added that his company had noted an increase of more than 200 per cent in space requirements requested by AI tenants compared to the previous year. According to Okada, these companies predominantly prefer well-located, renovated Class-B office buildings throughout Midtown South.
The exact term of the lease was not disclosed. Jason Majlessi and Arash Sadighi of Venture Commercial represented the tenant. Mr Majlessi stated in a release to Commercial Observer that 43 West 23rd Street and its owners offered Chalk the opportunity to significantly expand in New York City while retaining the necessary flexibility in their properties for high-growth AI companies. Spokespeople for Chalk AI and Castro Properties did not immediately respond to requests for comment.
Castro Properties, led by the Castro family, has owned 43 West 23rd Street since 1972. It is currently not known when Chalk AI plans to move into the property. San Francisco-based Chalk AI was founded in 2022 by Marc Freed-Finnegan, Elliot Marx, and Andy Moreland. Last year, the company acquired a Series A funding round of $50 million and was valued at $500 million.
