C-III Capital Partners joined a group of investors in a fundraising effort for a project management start-up called Honest Buildings. The project management platform compiles data for property owners to make construction projects more efficient.
The investor group, led by Brookfield Property Partners LP, raised $13 million for Honest Buildings with the goal of helping the platform establish an industry-leading standard to provide large property owners greater clarity in construction practices.
Honest Building curates a database that gives property owners access to cost savings through greater wealth of information that is sometimes still compiled on paper spreadsheets.
Honest Buildings founder and chief executive officer, Riggs Kubiak, said the database has increased the net operating income for companies using the platform by increasing project speed and reducing the cost of construction. The organization surveyed 60 clients in 2016, and discovered that the companies collectively saved about $100 million.
According to consultants McKinsey & Co, the commercial construction industry is among the least digitized sectors globally, which underscores the low productivity and consistent cost overruns and downtime the industry experiences.
Annually, $10 trillion is spent worldwide on construction-related goods and services, according to McKinsey.
Kubiak said the start-up plans to move abroad to Canada first, and then other countries alongside Brookfield.
This investment by C-III Capital Partners aligns with chairman and CEO Andrew Farkas’s past strategic efforts within the organization, which have provided an impetus for growth and various acquisitions that have expanded the organizations capabilities. Under the leadership of Farkas, C-III Capital partners has become an industry-leader in asset management and commercial real estate services.