JLL Spark, a division of real estate and investment management firm JLL, recently announced it will invest in Honest Buildings—an industry leading project management platform that was designed for—and backed by—real estate owners. JLL Spark’s investment is expected to help boost Honest Buildings’ expansion into new international markets. The financial backing will also bring real estate owners built, enterprise grade platforms that will be key to the real estate industry’s future.
“JLL has a long history of creating value for owners globally and this partnership will accelerate Honest Buildings onto the global stage,” Honest Buildings founder and CEO Riggs Kubiak told Connected Real Estate Magazine. “Real estate owners will have access to real time data that has never been accessible before allowing them to make better decisions which will lead to enhanced returns for their investors.”
The investment comes shortly after the close of Honest Buildings’ Series B round of $30 million that came from industry investors that included Brookfield Property Partners, Oxford Properties Group, The Durst Organization, DivcoWest Real Estate Investments, Rudin Ventures, First Capital Realty, QuadReal, Altus Group LTD, and C-III Capital Partners.
Leading venture capital funds Thrive Capital, Navitas Capital, Greensoil Building Innovation Fund, The Westly Group, Rockport Capital, and Circle Ventures also invested in the Series B round. The current investment in Honest Buildings is $50 million, comprising a strategic group of leading owners and venture investors.
“We chose to invest in Honest Buildings because its proven technology will provide a huge competitive advantage for JLL’s investor clients,” JLL Spark co-CEO Mihir Shah told Connected. “Its intuitive software is the only project management and capital building platform built specifically for commercial real estate owners and investing in game-changing technology is key to JLL’s Spark Global Venture Fund strategy. We’re looking forward to furthering Honest Buildings’ continued expansion with this investment.”
JLL uses Honest Buildings’ platform to manage its institutional clients’ total project value. It accomplishes this by centralizing project data, automating bid management, managing capital and standardizing reporting, which results in increased transparency.
Additionally, JLL Sparks’ financial backing will let Honest Buildings invest more into its product and continue to scale the company’s impact on progressing the urban landscape by empowering collaborative, data-driven decision for commercial real estate owners. Honest Buildings also plans to continue its worldwide expansion, beginning with the United Kingdom and Australia.
“Real estate owners, developers, and large real estate occupiers are constantly deploying capital throughout their portfolio—an inherently risky and entrepreneurial business, yet historically done without technology built specifically for them,” Kubiak said. “For owners, completing projects on time and on budget will make or break the underwriting for any asset they purchase. For developers, staying in line with the capital forecasts is truly their primary job on behalf of their investors. And, for large corporate occupiers, tracking spend across projects is paramount to your bottom line performance each year.
“JLL Spark, Honest Buildings, and the syndicate of leading owners and venture investors behind Honest Buildings, share the same vision—given the $10 trillion per year flowing through projects globally, owners need to have a platform built specifically for their needs, not those of the general contractor.”