Honest Buildings Partners with Milstein Family’s Circle Ventures; Secures $5-Million Financing Round.
Strategic Relationship to Accelerate Growth of Honest Buildings’ New Owners Platform
New York City (June 04, 2015) – Honest Buildings today announced that the venture arm of one of New York City’s most prominent real estate families has led the company’s $5-million strategic A-2 financing round. Circle Ventures, the technology investment platform of the Milstein Companies, led the round with participation from Thrive Capital, Westly Group, and Rockport Capital. The Milsteins have a robust platform that includes a real estate portfolio built through four generations of development, as well as a privately held bank that houses national real estate and construction lending divisions.
This strategic investment round follows the recent launch of Honest Buildings’ new owner-focused platform. The Honest Buildings product provides the first centralized collaboration and workflow solution that enables real estate owners and developers to manage and analyze vendors, costs, and data for operations, design, and construction projects across their portfolios in real time. The product has already been adopted by a host of notable clients, including WeWork, Kushner Companies, Equinox, Benchmark Real Estate Group and Madison Realty Capital, amongst others.
As the owners of both a significant New York real estate portfolio and Emigrant Bank, the Milsteins are uniquely positioned to appreciate fully and help share the capabilities and advantages that Honest Buildings offers its clients. “We know first-hand how rare it is to find effective technology that materially improves efficiency and transparency for owners and developers, while reducing risk for lenders,” commented Howard Milstein, Chairman and CEO of Milstein Properties and Emigrant Bank. “With trillions of dollars spent on construction and building improvements annually, we see an untapped opportunity to realize significant savings and efficiencies by harnessing the power of data and information to enable better decision making.”
Honest Buildings’ partnership with Circle Ventures and the Milstein family continues the company’s history of aligning with forward-thinking real estate industry leaders and venture capital firms. Honest Buildings already has a long-standing relationship with Thrive Capital and Jared Kushner, the CEO of Kushner Companies and board member of Honest Buildings. The strategic investment by the Milsteins is another important milestone for Honest Buildings, which has facilitated nearly $600 million of construction projects since its founding, positioning it as one of New York City’s foremost real estate technology companies.
“Our new partnership with Circle Ventures and the Milstein family is a strategic alliance that will help to accelerate our growth with owners, developers, and lenders,” commented Riggs Kubiak, Founder and CEO of Honest Buildings. “As the owner of both a large real estate portfolio in New York City and Emigrant Bank, the Milstein family has a deep understanding and appreciation for the value that Honest Buildings can unlock for real estate owners, borrowers, and the lending community.”
About Honest Buildings
Honest Buildings is the new standard in operations, design, and construction. The New York City technology company brings transparency, organization and efficiency to real estate owners and professionals worldwide. For owners, Honest Buildings creates level decision-making through a suite of bid management, analytics and workflow tools combined with deep market data, which yields unparalleled insight. For professionals, Honest Buildings enhances relationships through an online marketplace and community connecting them to progressive decision-makers and the most relevant partners.
Launched in 2012, Honest Buildings has raised more than $17 million in venture capital funding to date.
About Circle Ventures
Circle Ventures is a New York City-based proprietary capital investments firm focused on the technology sector. For more information: www.circleventures.com
About Milstein Companies
Over the course of four generations, the Milstein Family has a long track record of success in both real estate and finance. Milstein Properties has developed or acquired more than 50,000 apartments, 20 million square feet of office space, and 8,000 hotel rooms. In addition to its extensive experience in development and ownership, the Milstein Family has deep knowledge of the construction, management, and brokerage businesses gained through its management of National Kinney, Timko Contracting, Douglas Elliman, and Milford Management. Since 1986, the Milsteins have owned and operated Emigrant Bank and all of its subsidiaries, including Emigrant Realty Finance.