Legal AI Firm Sandstone Signs 14K-SF Lease at 141 East Houston Street

An artificial intelligence-powered management platform designed to help law firms has signed an office lease on the Lower East Side, Commercial Observer has learned.

AI platform Sandstone signed a five-year deal spanning 13,794 square feet on the entire third and fourth floors of East End Capital’s 141 East Houston Street, according to landlord broker Current Real Estate Advisors.

Asking rent for the space was $93 per square foot.

“This transaction is another example of what we’re continuing to see across the market,” Current’s Adam Henick, who represented the landlord alongside Rob Kluge, said in a statement. “We believed early on that delivering a newly built, fully furnished space with a premium level of finish would give the building a real competitive advantage, and this lease validates that strategy. When landlords invest in creating a best-in-class product, the market continues to reward it.”

Newmark represented the tenant, which is relocating from 45 Main Street in Brooklyn, but the brokerage did not immediately respond to a request for comment.

East End Capital developed the 63,000-square-foot property between Forsyth and Eldridge streets with Grandview Partners and Greg Kraut’s KPG Funds between 2020 and 2022 with designs by Roger Ferris + Partners. At the time, the project signaled a different kind of development pattern in the trendy enclave.

Built on the site of the historic Sunshine Cinema, it’s unclear where the building stands in terms of occupancy, but it was around 50 percent full when the owners refinanced the property with a $79.6 million from Fortress in 2022.

That same year, a private dining club that sold memberships through non-fungible tokens (remember those?) known as the Flyfish Club signed an 11,000-square-foot lease for three stories in the building.

Mark Hallum can be reached at mhallum@commercialobserver.com.