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Breakthrough Online Real Estate Network, Honest Buildings, Secures Series-A Financing to Continue Rapid Growth

Date: 06/24/2013

Company: Honest Buildings

New York City, N.Y. (June 24, 2013) – Honest Buildings, the leading online marketplace and discovery engine for building professionals, today announced that it has secured $5.5 million in Series-A Financing from investors Westly Group and RockPort Capital.

The funding, which reflects Honest Buildings’ power to improve the built environment by streamlining the process for building upgrades, will enable the company to continue to strengthen its service offerings, including HB Match, an online platform that seamlessly pairs building owners with qualified building solution providers.

By providing a simple tool for building solution providers to create free, online portfolios of their work, Honest Buildings is able to produce detailed evaluations of these companies based on the unique project criteria of real estate decision-makers in search of experienced specialists. The result is an efficient, enhanced process to quickly and thoroughly compare, vet and select the best solution provider for the specific requirements of the project, saving valuable time and resources.

Over the past five months alone, approximately $25 million in contracts were originated through the Honest Buildings platform, which hosts the portfolios of thousands of building solution providers and features nearly 1 million researched building profiles. Property owners that are using Honest Buildings for their real estate project needs include Jonathan Rose Companies, Kushner Companies, New York University and Brandywine Realty Trust, among many others.

“The world is in the midst of a fast-moving, dramatic global shift towards urbanization, creating a growing need for smarter, more flexible and advanced building solutions,” said Riggs Kubiak, co-founder and CEO of Honest Buildings. “The professionals responsible for creating this new urban landscape can be found on the Honest Buildings Network. By utilizing our HB Match solution, real estate decision-makers can connect with the right service providers through an efficient, in-depth and customized process, maximizing value for both the building and project stakeholders.”

The Series-A Financing follows the New York-based company’s launching of a London office to expand HB Match’s reach to the United Kingdom. Additionally, Honest Buildings has announced that Norbert Young, former president of McGraw Hill Construction and a 40-year veteran of the design, building and construction industries, has joined the company as an active advisor.

“As design and construction processes evolve, so too, must the way we do business within the industry in order to meet the increasing demand for high-performance buildings,” said Young. “Honest Buildings is uniquely positioned to truly make a difference in the way the real estate industry partners to produce enhanced built environments.”

Sitt Asset Management, a New York-based real estate investment firm, recently used Honest Buildings’ HB Match solution to compare qualified service providers for multiple capital improvements at 450 Broadway, a turn-of-the-century commercial building in Manhattan for which Sitt is currently executing a complete façade restoration and modernization program in preparation for first-class retail tenancy.

“Honest Buildings saved us significant money with no effort on our part, which is the biggest benefit,” said Abe Hedaya, director of operations for Sitt Asset Management. “Instead of spending hours searching for qualified and reasonably priced firms, Honest Buildings sought them out for us and provided a list of only the most relevant options resulting in significant savings for our team’s time as well as a more competitively priced project.”

Eneractive Solutions, an energy consulting, engineering and project development firm with offices in the tri-state area, recently won close to $200,000 in consulting services contracts using Honest Buildings.

“Honest Buildings is a valuable tool for marketing our expertise to building owners that are doing their homework on us,” stated Saverio Grosso, vice president of Eneractive Solutions. “For that person who has heard about us but would like to learn more, besides just going to our website, they can now visit Honest Buildings and view detailed case studies that show the level of the work we’ve completed on a vast array of facilities. It’s a great way for them to expand their research and it leads to a more qualified discussion when we speak with them.”

In addition to its HB Match solution, Honest Buildings’ scalable technology is addressing the broader need for more efficient and adaptable cities by providing municipalities and utilities with the power to foster the development of next-generation buildings and communities.

To date, the states of New York, through its Build Smart NY program (www.buildsmart.ny.gov), and Connecticut, through its Connecticut Property Assessed Clean Energy or C-PACE program (www.c-pace.com), are using Honest Buildings’ unique HB Platform service to power state-wide online networks that highlight their initiatives, showcase the work being done to improve buildings and provide property owners with the tools and insight needed to pinpoint the most qualified vendors for their building projects.

”We are excited by the opportunity to invest in companies such as Honest Buildings that are creating forward-thinking, technology-based solutions that reflect a keen understanding of the challenges facing the industries they serve,” stated Gary Dillabough, managing partner of The Westly Group. “Thousands of building owners and solution providers have already harnessed the power of Honest Buildings to expand their networks and identify synergies that are producing real value for real estate projects. We strongly believe in the platform’s potential to have a transformative impact on the way that building professionals connect and improve their business process.”

“Honest Buildings is pioneering a business platform for the real estate market that uses information technology, social networking and big data to more efficiently connect and catalyze transactions amongst all the stakeholders,” stated Dhiraj Malkani, partner at RockPort Capital. “It sits squarely at the intersection of web, IT, big data and smart cities that is bringing our physical world into the digital domain. We are very impressed by the vision this world-class team has laid out and are confident that under Riggs’ experienced leadership Honest Buildings will continue to define and lead this growing category.”

About Honest Buildings

Honest Buildings is an online marketplace and discovery engine for building professionals. Through its tailored service offerings, Honest Buildings provides the industry’s best building solution providers with the tools to showcase their work on a single platform that connects them with real estate decision-makers in search of their expertise. The site empowers building owners to make better decisions, faster, saving valuable time and resources. Honest Buildings’ scalable technology aims to improve the built environment by streamlining the process for real estate owners to deliver high-performance buildings that are strongly positioned to address the needs of modern users.

For more information, please visit www.honestbuildings.com.

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