Focus

REITs address cyber risk as innovation continues to accelerate

NAREIT – March 17

REITs are increasingly reliant on technologies across the spectrum of information technology and operating technology that range from cloud-based systems and the Internet of Things (IoT) to automated building management systems, workplace experience apps, and augmented reality. The rapid pace of innovation in an increasingly digital real estate universe means more blocking and tackling across a larger arena when it comes to shoring up defenses against cyber threats. A proposed SEC rule that is expected to go into effect this year is pushing the focus on cyber risk even more to the forefront for the REIT industry. Although the release of the final rule is still pending, at a high level, the rules outline expectations for the reporting of material cyber incidents in a timely manner; require disclosures on policies and procedures related to cyber strategies; and also create some standards around how cybersecurity disclosures are presented.

News

Modular construction offers solution to affordable housing crisis

Urban Land - March 3

The Hilda L. Solis Care First Village, a roughly $48 million, 232-unit project in downtown Los Angeles, was erected in a matter of months. Built with CRATE Modular components, it is one of a growing number of modular construction projects that will help address the housing affordability crisis, streamlining the construction process, saving time, and reducing the need for labor. The project, built next to the Men’s Central Jail, is part of an effort to offer more housing in a city that has around 69,144 unhoused individuals, according to the Los Angeles Homeless Services Authority.

Will AI transform residential real estate tech?

The Real Deal – February 22

The AI revolution has PropTech boosters proclaiming that in the future, real estate’s truism will go from “location, location, location” to “data, data, data.” The acceleration of AI technology and hype around a new generation of chatbots, like OpenAI’s ChatGPT and Google’s Bard, suggest potential to reshape residential real estate technology. But despite the gold rush mentality infecting PropTech – more than $8 billion in equity and debt investments were made in the first half of 2022, according to Houlihan Lokey – realizing AI’s potential will hinge on the strategy of established players, investor sentiment, and whether or not major residential firms will assimilate the tech into their workflow.

Deals

Microsoft, Kimbal Musk, NBA’s Russell Westbrook invest in Brooklyn-based climate tech company BlocPower

CNBC – March 2

BlocPower has raised $155 million in funding as the Brooklyn-based climate technology company is looking to further its building decarbonization efforts across the U.S. Energy consumption and efficiency issues plague many old American residential and commercial buildings, making them a target for improvement for cities and states focused on green goals. Direct energy and electricity use by buildings comprise roughly 38% of greenhouse gas emissions in the U.S., according to the U.S. Green Building Council.

FTC will seek to stop ICE from buying Black Knight

Reuters – March 9

The U.S. Federal Trade Commission on March 9 said it would take action aimed at stopping New York Stock Exchange parent Intercontinental Exchange from acquiring mortgage data vendor Black Knight in a $13.1 billion deal. The agency said the proposed deal would mean higher fees, less innovation, and fewer choices in the process of financing the purchase of a home.

Engrain raises $12M Series A funding

Commercial Observer – March 16

Despite macroeconomic headwinds, including the collapse of Silicon Valley Bank (SVB), Engrain, an interactive property mapping technology and data visualization software startup, has found its way to closing a $12 million Series A round. RET Ventures led the round.

Nestment raises $3.5M to help friends and family buy homes together

TechCrunch – February 21

Nestment, a startup aiming to give people a way to co-own properties with friends and family, is emerging from stealth with $3.5 million in pre-seed funding and an official launch into public beta. Protofund and IDEA Fund Partners co-led the financing, which included participation from Concrete Rose Capital, VamosVentures, and a set of angel investors from Airbnb, The MBA Fund, and others.