Rise Buildings, a Chicago startup that makes software for the commercial real estate industry, has been acquired by a New York CRE tech company in a deal reportedly worth $100 million.
VTS, whose clients include Blackstone and Hines, announced that it purchased Rise Buildings on Tuesday. The companies did not disclose terms of the deal, but the Wall Street Journal reported that it was worth about $100 million.
Rise Buildings, founded in 2016 by Prasan Kale and Sid Jain, makes a mobile app for commercial real estate building managers to monitor and serve tenants. Rise’s software integrates directly with existing property management systems, access control and sensor systems, as well as amenities and elevators.
The software is used across five countries at more than 300 properties, according to Rise Building’s website. Some of its clients include JLL, CBRE and Cushman & Wakefield.
VTS, which makes a leasing, marketing and asset management technology platform, said it purchased Rise Buildings to broaden its offerings to landlords. The company says more than 60% of Class A office space in the U.S. and 12 billion square feet of office, retail and industrial real estate is managed on VTS’ platform.
“In acquiring Rise, VTS expects to continue to expand and strengthen the value our customers already receive from our platform with new capabilities that will be more critical than ever as landlords focus on renewing existing tenants and reducing vacancies in the coming months,” said VTS CEO Nick Romito in a statement.
Kale, Rise Building’s CEO, will transition into the role of managing director for the combined companies, and oversee the strategic direction of Rise within VTS.
The acquisition comes at a time when the commercial real estate industry broadly is planning for workers to return to the office. According to a new report from design and architecture firm Gensler, post-Covid design trends include touchless infrastructure and other tech-enabled products to help building managers monitor tenants’ movements and mitigate illnesses.
