The funds will be used to gear up for fall sales and acquire additional
parcels to meet consumer demand
SAN JOSE, Calif., Aug. 3, 2022 /PRNewswire/ -- Nabr, a direct-to-consumer housing startup, has raised $48M in equity and debt financing to continue its mission to build the future of sustainable urban living. The round was led by 2150, the leading venture fund focused on sustainability and urban technology. A portion of the funds were used to acquire three development sites in Downtown San Jose's SoFA District. This land will feature 500 for-sale residential units, which includes SoFA One, in addition to two other buildings: SoFA Two and SoFA Three.
Nabr's goal is to put more people on a path to owning a high-quality, environmentally friendly home in the city. Nabr treats housing like a true consumer product, and has built a software platform to transform the process of finding, designing, purchasing, and living in a home that fits each resident's lifestyle. Co-founded by Bjarke Ingels (founder of architectural firm Bjarke Ingels Group), Roni Bahar (formerly of WeWork) and Nick Chim (co-founder of Flux, a spinout of Google[x]), Nabr launched to the public in December 2021, offering the opportunity to join a waitlist for its future developments.
"With this latest funding, we are ready to start transacting with prospective residents," said Roni Bahar, Nabr's CEO. "For most Americans, a house is the biggest purchase of their lifetime. Yet the experience of buying a home does not meet consumer expectations. With the addition of 2150—whose investors include some of the most progressive institutions in Scandinavia and the global real estate ecosystem—we have the right partners in place to help bring the U.S. housing market into the 21st century." The latest fundraising follows the $14M seed round led by Zigg Capital in 2021, with participation from DivcoWest, Sand Hill Road's biggest landlord.
This capital influx is well-timed for Nabr to ramp up to begin construction in San Jose, which in recent years has become the most competitive housing market in the U.S., a dynamic now exacerbated as workers are called back to the office. "In 2022, the average sales price for a home in San Jose hit a whopping $1.8 million dollars. There is a shortage of inventory, much of which consists of post-war suburban homes, with a huge disparity between quality and price point. I saw this problem first-hand while living in the South Bay, which drove me to join Nabr," said Cara Eckholm, Nabr's Chief Revenue Officer.
While Nabr's first building, SoFA One, will consist of only 140 units, the company currently has nearly 4,000 people on its Silicon Valley waitlist. The outsized demand indicates opportunity for Nabr's expansion across the Bay Area, hence the acquisition of additional development sites.
"At BIG, we were designing sustainable urban homes in Copenhagen as early as 2005," said Bjarke Ingels, co-founder of Nabr and founder of the eponymous architectural firm, which now employs 600+ people globally. "But in order to really scale what BIG does, I realized we needed to take more of a product-driven approach to every part of the development process. That's why Roni, Nick and I co-founded Nabr, to help bring sustainable urban homes to the mass market. Nabr's consumer data shows that the demand is there."
Bringing investors like 2150 on board will help bring the quality of life and sustainability innovation that defines the Scandinavian housing market to the U.S.. Jacob Bro, a partner at 2150, commented: "Real estate is responsible for around 40% of global CO2 emissions and is the only industry where the product gets more expensive with time with detriment to society, the industry is in dire need of innovation. By reimagining how we design, build, and finance urban homes aligned with the customer and the environment, Nabr aims to tackle this key issue of our time. We think Nabr's visionary product strategy will help catalyze a much needed cultural shift, helping cities move beyond the carbon-intense suburban sprawl that has defined U.S. new housing for the last half-century."
"It's fashionable in tech to say 'it's time to build.' We are actually building," said Roni Bahar. "All engines are ready to go in San Jose, and we will grow from there."
About
Nabr is a direct-to-consumer housing company and the first to deliver custom, sustainable apartments at scale. Nabr treats housing like a true consumer product—our goal is to put more people on a path to owning a high-quality, environmentally friendly home in the city. We have built a platform to transform the process of finding, designing, purchasing, and living in a home that fits each resident's unique lifestyle and financial situation. Nabr's first development is coming soon to Silicon Valley.
Contact
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SOURCE Nabr
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