Modular Firm RAD Urban Secures $28M In Financing To Grow Company, Bring Modular To Other Developers
Oakland-based RAD Urban, which purchased a factory in 2013 to support its steel-framed modular unit manufacturing, is advancing modular construction technology that can support high-rise buildings of up to 40 floors. The investment from New York-based Innovatus will give RAD Urban the financing it needs to bring its modular expertise to third-party developers and grow the company.
“Our company is at an important phase in our growth trajectory and this new capital along with [Innovatus'] strategic support will enable RAD Urban to expand its capacity and market footprint, while marketing our technology for other developers," RAD Urban CEO Randy Miller said in a statement. "We are growing carefully and deploying this capital to address specific expansion initiatives that will set the foundation for even bigger plans. We chose Innovatus because of their fast comprehension of our business, their insightful contributions, and their strategic alignment with our plan.”
The company is well-positioned to deliver on the promises of modular construction and create change in construction productivity and redefining high-rise construction practices, Innovatus partner Joseph Schottland said in a statement.
The financing helps Innovatus strengthen its diverse portfolio. The independent adviser and portfolio management firm has about $1.6B in assets under management.
RAD Urban has brought modular construction to housing in the San Francisco Bay Area, including a project in Oakland that will be the country's tallest prefab modular high-rise apartment complex. The project will have two 29-story towers with 200 units of housing.
By maintaining control of design, engineering, manufacturing — the company owns a 160K SF unionized lean manufacturing facility in Lathrop, California — and construction, RAD Urban's modular approach reduces project costs by 25% to 40% and completes projects in a shorter time than traditional methods, according to a release about the partnership.
Modular construction has gained attention because of those perceived benefits, with more developers considering modular, and cities such as San Francisco exploring possible locations for a factory to build modular units with union labor.