Honest Buildings, the only project management technology built and backed by commercial real estate owners, has raised additional investment in its Series B, bringing the total round to $21 million. The additional investment is led by real estate owners Oxford Properties Group, who own and manage 60 million square feet of commercial real estate globally, as well as New York-based The Durst Organization and national owner DivcoWest Real Estate Investments.
They join existing Series B industry investors Brookfield Property Partners, Rudin Ventures and C-III Capital Partners, in addition to leading venture capital funds Navitas Capital, Greensoil Building Innovation Fund, Bienville Capital Management, Riverpark Funds, The Westly Group, Rockport Capital, Circle Ventures and Thrive Capital.
“Oxford Properties is pleased to join the impressive group of investors in Honest Buildings,” says Michael Turner, Oxford’s Executive Vice President, Canada, who is also joining the Honest Buildings Board of Directors. “The real estate industry is being reshaped by technology and the availability of real time data. By improving visibility, platforms like this are helping us and owners across the globe make smarter, faster decisions at scale, and increasing control over outcomes.”
“The $10 trillion dollar annual global construction industry is largely still being run by real estate owners with spreadsheets, giving way to a lack of visibility into the cost and status of their projects even though they bear all of the risk of being over budget or behind schedule,” says Honest Buildings CEO Riggs Kubiak, who came up in the industry as an asset manager. “Access to data brings about change that puts the power back into the hands of the owners, ultimately changing the way that capital is spent across portfolios all over the globe.”
Honest Buildings has been experiencing rapid growth. In 2017, the platform powered a 500% year-over-year increase in project volume, and facilitated more than $6.5 billion in transactions for landlords, from capital projects to larger developments and redevelopments. This capital raise will allow the real estate technology company to continue expanding across North America and into select international markets, and to grow its product and business development teams.
“Honest Buildings’ technology significantly enhances effectiveness of capital deployment across construction projects, providing teams with real-time, actionable data intelligence,” says Ric Clark, Senior Managing Partner and Chairman of Brookfield Property Partners, who also serves as a member of Honest Buildings’ Board of Directors. “It is no surprise to us that other premier real estate owners such as Oxford Properties continue to identify Honest Buildings as a growing industry leader and promising investment opportunity.”