Phoebe Gates’ AI shopping startup Phia has locked down the penthouse at 37 East 18th Street in Manhattan’s Flatiron District, taking roughly 8,900 square feet as it shifts into a brick-and-mortar hub. The new digs put the company a block from Union Square, giving the buzzy app a splashy Manhattan address to match its recent fundraising haul and celebrity-heavy cap table.
The deal, which The Real Deal reports covers the building’s top-floor unit, was arranged with JLL representing Phia while Zar Property handled the landlord side in-house. The length of the lease and the asking rent were not disclosed, and both Zar and JLL did not provide immediate comment. According to The Real Deal, the signing was first reported on June 3.
Prewar Flatiron Tower Recast As Boutique Class A Hub
The 10-story property, historically known as the Ely Building, totals roughly 67,000 square feet and was acquired by Zar Property in 2024 for about $27 million. Zar’s team carried out a full-scale renovation that brought in a new lobby and a rooftop amenity, part of a broader repositioning aimed at boutique Class A tenants. Project details appear on BKSK Architects and sale records reviewed by Traded show the 2024 purchase price.
Phia’s lease comes on the heels of a $35.5 million financing round that brought the company’s total disclosed capital to about $43.5 million and highlighted a long roster of celebrity angels. High-profile names such as Khloé Kardashian, Alix Earle, Paris Hilton and Jessica Alba were cited among backers during a May segment where the founders discussed growth on a national morning show. Coverage from Tech Funding News details the fundraise and investor list, and notes that Phia launched in April 2025 and now claims more than 1.5 million users along with partnerships with thousands of retailers.
AI Tenants Keep Flatiron Landlords On Their Toes
Phia’s move slots neatly into a broader trend. According to Colliers, AI tenants drove much of Manhattan’s early 2026 tech leasing, accounting for about 670,000 square feet and more than a third of tech deals in the first quarter. That surge has turned Midtown South and Flatiron into particularly fierce battlegrounds, with landlords polishing lobbies, layering in amenities and carving up floors into smaller boutique spaces to lure fast-growing startups. Brokers say the shift is nudging owners of older properties to recast them for scaleups rather than traditional office users.
For Phia, a downtown office gives sales, partnerships and hiring teams a local base while keeping the company close to retail brands and media partners. Whether a penthouse HQ helps a Gen-Z-founded app turn celebrity buzz into lasting retail traction is the storyline to watch as Phia scales through 2026.
