Factory_OS Raises $55 Million to Advance Modular Construction to Help Solve Housing Crises – ForConstructionPros.com

Building nearly 1000 units to date, Factory_OS creates multifamily housing using off-site factory construction that delivers high-quality housing faster and at lower costs. The Mayfair is one example, built in El Cerrito, Calif., with 156 units at a rapid transit system station.

Nancy Holliday

Factory_OS announced today that it has raised $55 million in Series B funding from six tech and finance industry giantsAutodesk, Citi, Facebook, Google, Morgan Stanley and round leader Lafayette Square. The investment will help Factory_OS accelerate growth and further integrate digital technologies to build multifamily housing using a safer, more sustainable, less expensive and more efficient construction process.

Acting on the belief that housing should be built more like cars, Factory_OS takes an integrated, industrialized and tech-enabled approach to removing barriers throughout the housing development process. The San Francisco Bay Area-based company has an active research and development program and incorporates design, technology, construction and workforce innovations in pursuit of its vision: to change how we build housing.

Factory_OS is committed to delivering high-quality, tech-ready, cost-effective multifamily housing that is more environmentally friendly and creates new living-wage jobs resulting in far-reaching community benefits.

The three-year-old company has already proven its concept of high-quality off-site factory construction combined with rapid onsite installation in the Bay Area, the nations most expensive housing market.

Factory_OS has built nearly 1,000 units to date, including supportive, affordable, student and market-rate housing. In addition to driving down production costs by 20 to 40 percent, Factory_OS can erect a 100-unit apartmentbuilding in less than 10 days, delivering housing over 40 percent faster than conventional construction can.

The company expects to cut costs by 50 percent over the next year as its partnership with Autodesk enables further integration of the design, technology and construction processes. That cost savings doubles the amount of housing that Factory_OS can create with the same investment.

With a shared vision of improving construction outcomes through technology, were excited to build on our original investment in Factory_OS to improve the home-building process, from design through fabrication and supply chain management, said Andrew Anagnost, CEO of Autodesk. Our two-way collaboration not only helps us improve our products, but also helps ensure more homes can be built faster, less expensively and more sustainably. Factory_OS is a 350,000 square foot laboratory that enables us to continue proving innovations in construction.

The capital infusion will enable Factory_OS to ramp up manufacturing in its second Mare Island facility, invest in robotic and other advanced technology initiatives for both facilities, expand into Los Angeles, and open a housing innovation center that will model technology and design advances. In addition, it will partner on research and education activities to spur industry adoption of housing innovations.

Working with the established production ecosystem to drive efficiency, quality and equity across the board is core to Factory_OSs approach.

By retooling multifamily housing production from beginning to end, were supporting everyone involved with constructionarchitects, engineers, general contractors, union workersto do what they do faster and more efficiently, said Rick Holliday, CEO of Factory_OS. We aim to have an impact on housing costs that goes beyond construction, so were also engaging with policy and finance players to create a comprehensive framework that everyone can benefit from.

Bringing innovation to the sector is vital, as housing instability has worsened amid the pandemic, said Jeremy Johnson, co-head of Citi Community Capital. By changing the way housing is built, we believe Factory_OS will bring more efficient and lower-cost delivery of multifamily units to the neighborhoods where we live and work. Were proud to be a part of this effort and look forward to making homes more affordable for our communities.

Factory_OS sees its workforce approach as essential to achieving its vision. Through its partnership with the Northern California Carpenters Regional Council, Factory_OS employs 500 union workers earning competitive wages and benefits. Also, through its unique training programs with the union and redefined construction process, Factory_OS has expanded the depleted construction workforce to make it more gender and racially diverse, as well as more accessible to a broader employee base.

As Factory_OSs first partner, were excited to share the benefit of these companies expertise in finance and technology, said Bob Alvarado, executive secretary-treasurer of the Northern California Carpenters Regional Council. We embrace technology and are proud to work with Factory_OS to grow the workforce, enhance skills and productivity, and create new middle-class jobs with living wages and benefits.

Factory_OS investors are strongly motivated by the companys enormous impact potential.

Facebook builds and supports communities, said John Tenanes, Facebooks vice president of global facilities and real estate. Our investment in Factory_OSan innovator building technology to bring down the cost of housing constructionis part of our broader company initiative to help fund scalable and affordable solutions that will help to alleviate the housing crisis in California.

Damien Dwin, CEO and founder of Lafayette Square, called it "meaningful and exciting" thatthe impact-driven asset management platforms first investment is in Factory_OS.

Our strategic partnership is a great first step in fundamentally changing the business of housing, Dwin said. Looking at the industry from 360 degreesfrom design and development, to financing and construction, to resident services and employmentis key to creating a sustainable model that elevates our communities.

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Factory_OS Raises $55 Million to Advance Modular Construction to Help Solve Housing Crises - ForConstructionPros.com