RXR launches $50M tech investment fund
Vehicle to close by end of 2018
RXR Realty is raising a $50 million fund to invest in real estate tech startups.
The real estate company hopes to close the vehicle by the end of the year, Bloomberg reported.
“We’ve seen how technology has become more and more ubiquitous in our business and want both the opportunity to invest and to be at the forefront of leveraging these technologies that can help us run our business more effectively,” RXR’s CEO Scott Rechler told the outlet.
Investors will be able to invest an additional $100 million in startups alongside the fund, according to Bloomberg.
RXR’s move comes as a growing number of real estate companies invest in tech startups. For example, the in-home assistant and property management company Hello Alfred recently raised $40 million in a Series B round led by DivcoWest and Invesco.
Meanwhile Fifth Wall Ventures, a VC company that counts several landlords among its investors, is raising a new $400 million real estate tech fund.
And RXR itself was an investor in MetaProp’s recent $40 million real estate tech fund. Rechler’s firm is also an active debt lender in the city and was recently tapped to co-develop the Jet Blue Terminal at John F. Kennedy International Airport. [Bloomberg] — Konrad Putzier