Fyxt, a cloud-based operations platform for commercial real estate (CRE), today announced raising a $4 million Series A led by RET Ventures, according to a press release.
The company says it will use the funding, which included participation from UK-based family office Reuben Brothers, to accelerate the roll-out of its technology to triple net lease (NNN) property owners across the U.S. It also said it will focus on enhancing its tech stack, adding to integrations and expanding its vendor marketplace.
Founded in 2017 by Ryan Botwinick and Vidya Chokkalingam, Fyxt is attempting to “bridge the disconnect between commercial asset owners, managers, tenants and service providers,” by providing integrated software solutions to optimize essential assets and other historically net-lease environments.
While Fyxt says its tech works across all property types and lease structures, the company says its platform is most commonly deployed for NNN industrial assets. These NNN leases a type of leasing agreement, used mostly in the commercial real estate sector, which places the bulk of property upkeep, maintenance, taxes and renovations on tenants instead of property owners.
“We are consistently hearing about the need for intelligent tools to optimize the operations of NNN properties, and Fyxt is one of the only technology products built specifically for this use. We expect Fyxt to continue to make monumental strides in the industry, streamlining operations, reducing costs and boosting NOIs for owners of NNN properties,” stated Christopher Yip, Partner at RET Ventures, in the release.
Fyxt says these leases create a lack of visibility into building maintenance and confusion about which party is responsible for specific repairs, and aims to fix these misalignments through its platform which provides digitized lease contracts, streamlines operations for stakeholders, integrated accounting, data visualization, vendor compliance and insurance software.
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In addition, the company offers an expense management platform for tenants, a marketplace of pre-approved vendors to simplify vendor procurement, and says that its services enable warehouse, retail, medical and other NNN asset owners and operators “to efficiently run true capital cost analyses and manage operations through the NNN lens.”
The company also noted that NNN properties are expected to have a large growth year, with industrial real estate expected to grow by an average of 350 million square feet in each of the next five years, according to a report by Yardi Matrix.
“We focused on triple net quite frankly because the multifamily in the true gross leases, office and whatnot, were saturated, especially in the residential sector. When you have a straightforward gross lease, it’s easy to have a workflow for maintenance [or] a tax event, [but] when you have modifiers that are specific to lease negotiation, that’s where it becomes difficult,” CEO Botwinick told Commercial Observer.
The CEO and co-founder also noted that the platform is designed to work with legacy system that “aren’t built to communicate with additional modules”, through the use of its agnostic, open API.
Fyxt says to date it has contracted 35 million square feet, and is active in approximately 15 million square feet that are rolling out over the next two quarters.
In other recent proptech news, Sundae launched its new premium property investment membership program. Sage also unveiled its new property management cloud solution.