A $ 30 million funding round has been closed by New York-based Honest Buildings, which markets itself as the only project management platform designed and supported by real estate owners.
Honest Buildings’ software is used by several Canadian property owners and managers, and one of its primary investors is First Capital Realty.
“Owners, operators and managers rely on Honest Buildings to manage billions of dollars in total project value by centralizing project data, increasing transparency, automating bid management, capital planning, re-review and reporting standardization, ”said Crystal Proenza, Honest Buildings Brand and Performance Manager. .
“Industry leaders like Brookfield, Oxford Properties, Beacon Capital Partners, Invesco, SL Green, QuadReal, Altus Group, First Capital Realty, The Durst Organization, Silverstein Properties, JBG Smith, Harvest Properties, Parkway Properties and Rudin Management use the intuitive software to streamline project management processes, increase revenue with faster project delivery, reduce project costs, and make data-driven decisions on projects at the portfolio level.
Honest Buildings claims that companies using its software are able to save 5-15% of project costs and reduce project completion times by 5-20%.
The foundation of honest buildings
CEO Riggs Kubiak launched Honest Buildings after a decade in the commercial real estate industry, including five years with Tishman Speyer in the areas of acquisition, asset management and global sustainability. Since building owners take all the capital risks on projects, Kubiak’s philosophy is that they should also be directly involved in their business and technology.
“He has learned firsthand the frustration and inefficiency of the real estate industry that relies on outdated paper-based processes, and he firmly believes that innovative enterprise technology can solve these problems the same way it can. has done in almost every other industry, ”Proenza said of Kubiak. “He wanted to build the product he and his colleagues needed and partnered with some of New York’s most influential real estate owners to do it.”
Honest Buildings has now completed its Series B funding round, with an additional investment of US $ 5 million led by First Capital, one of the largest owners, developers and managers of retail-focused and anchored urban properties. in the grocery store.
The latest investment in Honest Buildings brings the total to date to $ 48 million.
The private company does not disclose its income.
“We take a partnership approach to the market and believe that the future of real estate technology requires deep collaboration and integration between real estate owners and the technology companies themselves,” said Proenza.
Latest funding is part of rapid growth
According to Proenza, Honest Buildings has differentiated itself through its dedication to user experience and design. The latest funding is focused on accelerating technology and product functionality.
“The product team spends countless hours working directly with customers, watching them use the product, and looking for ways to make this enterprise software as intuitive, if not more, than most consumer applications on which people matter in their personal lives, ”says Proenza.
Honest Buildings’ project volume has increased 13-fold and has managed $ 13 billion in managed projects over the past two years. A fourth quarter 2016 business survey of 60 property owners using the software found that it saved these businesses over $ 100 million in project costs over the year.
Honest Buildings doubled its workforce in 2017 and continues to grow, Proenza said. The company now has around 80 employees.
Since many of Honest Buildings’ investors and users are based in Canada, Proenza said a satellite office could open here in the future if growth continues at the current rate.