Focus
Cadre launches $400M fund targeting individual investors
Forbes – February 2
Real estate financial technology company Cadre has launched a new $400 million real estate fund oriented to individual investors, financial advisors, and institutions. The Cadre Direct Access Fund is an attempt by Cadre’s founder Ryan Williams to push the company’s technology investment platform closer to smaller investors and advisors looking to invest directly in real estate deals. The Direct Access Fund, which already has commitments from some large institutional investors, will be made available to qualified investors with minimum per-property checks that can be as low as $5,000.
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News
Two SPACs seek $425M for PropTech deals
The Real Deal – February 2
Another day, another SPAC. The latest is from Scott Seligman, a real estate investor and minority owner of the San Francisco Giants, who is teaming up with cousins Brian and Ben Friedman to raise $175 million for a PropTech deal. Brian is a managing partner at investment firm Foxhall Partners while Ben is a former senior trader at Citigroup. BOA Acquisition Corp. is targeting a business with an enterprise value north of $500 million, the company said in a regulatory filing. It aims to invest in digital technology that can streamline the real estate marketplace.
Newmark strikes deal to buy Knotel’s assets
Commercial Property Executive - February 1
Newmark has agreed to buy the assets of Knotel as part of the flex space provider’s reorganization plan, the companies announced. Knotel has filed for Chapter 11 bankruptcy in Delaware. Coworking space has been particularly vulnerable to the effects of the pandemic, as operators’ flexibility turned from its greatest strength to its biggest weakness. While demand has taken a hit, however, a CBRE report from December found that shared space will have a vital role in the office sector’s recovery.
Survey reveals increased investment in healthy building technologies
Chain Store Age – January 29
Improvements in energy efficiency, renewable energy, and smart building technology are becoming more critical each year, according to a survey of more than 800 building “decision-makers” by Johnson Controls. According to the survey, 76% of facility executives stated that energy cost-savings are a top driver for investment. The survey also found that businesses are increasing investments toward wellness, clean air, and peace of mind. In most cases, despite lower occupancy, building operating costs did not decrease during the pandemic, highlighting the need for technologies to deliver flexibility, according to Johnson Controls.
Walmart bets bigger on online grocery as it ramps up automated fulfillment at stores
CNBC – January 27
Walmart will expand its use of high-tech systems that quickly pick and pack online grocery orders as it anticipates shoppers’ demand for pickup and delivery will outlast the pandemic. Dozens of Walmart’s stores will become fulfillment centers, with a portion of those stores turned into small, automated warehouses, the company said. When an order comes in, robots will retrieve items from chilled groceries to electronics and bring them to an employee at a picking station to help assemble.
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Deals
Simon Property Group forms $300M SPAC
Bisnow - January 29
The largest U.S. mall owner, Simon Property Group, has formed a special purpose acquisition company with a target value of $300 million, according to a new filing with the U.S. Securities and Exchange Commission. The filing stipulates that the new SPAC, called Simon Property Group Acquisition Holdings Inc., “will seek to target an innovative business with the potential to disrupt various aspects of the retail industry and make a transformative impact on in-person and/or online experiences.”
Tishman Speyer-backed SPAC to take smart-lock maker Latch public in $1.6B deal
Reuters – January 25
Latch plans to go public through a merger with blank-check company TS Innovation Acquisitions Corp, backed by Tishman Speyer, in a deal that values the smart-lock maker at $1.56 billion. Founded in 2014, Latch has earlier partnered with Alphabet’s Google to develop smart thermostats and United Parcel Service to make smart locks in New York apartment buildings. The deal is expected to close in the second quarter of 2021.
Rhino raises $95M to grow rental deposit insurance offering
PYMNTS – January 26
Rental security deposit insurance startup Rhino, based in New York City, has raised $95 million to help reach its goal of saving renters $500 million in 2021. Rhino’s flagship product is security deposit insurance, which is a direct replacement for a cash security deposit. Renters pay Rhino a monthly fee as little as $1.50, and Rhino insures the property owner for possible damages and lost rent. From January 2019-21, the startup saw a 1,500% growth in contracted annual recurring revenue, hitting $60 million.
Roostify raises $32M Series C for home lending
Crunchbase – January 26
San Francisco-based Roostify, a digital platform for mortgage lenders, has raised $32 million in venture funding. While commercial real estate occupancies have taken a hit in some cities as many people continue to work from home amid the COVID-19 pandemic, residential real estate has remained hot. The company allows different parties to bring in data and information from other online sources to streamline the homebuying process. Roostify intends to use the funding to invest in artificial intelligence to decrease document processing time and increase accuracy, according to the company.
Rent-to-own startup Divvy Homes raises $110M in new funding
Tech Crunch – February 2
Despite all the headaches that come with it, homeownership is still the American dream for many. Divvy Homes — a startup that helps people realize that dream by buying a house and renting it back to them while they build equity — has just closed on $110 million in Series C funding. Tiger Global Management led the round, which also saw participation from a slew of other investors, including GGV Capital, Moore Specialty Credit, JAWS Ventures, and existing backers such as a16z. Over the course of 2020, Divvy financed five times as many homes as it had in pre-pandemic times.
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