AI startup Modal Labs is breathing new life into Rudin’s troubled Tribeca office tower.
The AI infrastructure provider signed a 157,000-square-foot lease at 32 Sixth Avenue, a company spokesperson said. The deal spans three floors at the 1.2 million-square-foot office tower. Asking rent and the length of the lease were not disclosed. The transaction was first reported in CBRE’s October Manhattan office report.
Modal plans to relocate from Stellar Management’s 233 Spring Street in mid-2027. The company currently has about 140 employees, with the additional room intended to accommodate future growth.
That growth has already gone into overdrive. In October, Modal announced a $750 million Series D funding round at a $15.75 billion valuation, less than five months after raising $355 million in a Series C.
The lease is a significant win for Rudin as it works to refill a building that has struggled with vacancies since the pandemic.
In December 2025, the value of 32 Sixth Avenue was marked down to $340 million, a 56 percent decline from its $770 million valuation in 2015, according to Morningstar Credit. Occupancy stood at just 57 percent as of June, according to Fitch Ratings.
The building’s tenant roster has thinned in recent years. CenturyLink Communications downsized in 2021, while Dentsu Holdings USA also reduced its footprint before relocating in August 2025. iHeartMedia division AMFM Operating left when its lease expired in 2022.
Rudin has been working to reposition the property while navigating its debt. Last year, the landlord secured a four-year extension on its $425 million commercial mortgage-backed securities loan, pushing the maturity to November 2029, with two additional one-year extension options. As part of the agreement, Rudin committed $100 million to capital improvements, including a renovated lobby, an on-site leasing center and upgraded ground-floor retail.
Rudin purchased the former AT&T headquarters in 1999 for $150 million and later invested $100 million in the property. The 28-story building’s largest tenant is tech company Telx, which occupies 146,000 square feet under a lease that runs through 2033. The average asking rent Downtown was $62.68 per square foot in October, according to the CBRE report.
A Rudin spokesperson did not immediately respond to comment.
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