NEW YORK CITY—An investment group led by Bessemer Venture Partners and Fifth Wall Ventures has acquired a majority interest in WiredScore, which rates technological infrastructure in commercial properties. Deal terms were not disclosed; the sale completes the formal divestment by Jared Kushner, who co-founded the company in 2013 and whose majority stake was reportedly valued at between $5 million and $25 million. Kushner had served as an advisor to WiredScore until assuming a position with the Trump administration earlier this year.
“Buildings are no longer just a protection against elements: they are a nexus of connectivity,” says Brendan Wallace, CEO and co-founder of Fifth Wall Ventures, a Los Angeles-based venture capital firm that invests in real estate technology. “WiredScore is the industry standard, providing the most dynamic measure for that essential technological capacity.” The company's standard for evaluating connectivity, Wired Certification, has been employed for the Empire State Building in New York City, the Willis Tower in Chicago and the Shard in London, along with development projects including Duo Tours in Paris and Hudson Yards on Manhattan's Far West Side.
WiredScore CEO Arie Barendrecht says that Bessemer and Fifth Wall's interest in the firm “confirms the urgency of our mission to improve digital connectivity in offices and help businesses find the buildings that meet their needs. With Amazon recently prioritizing optimal connectivity requirements for their HQ2 location selection, and signing a lease at Brookfield Property's Wired Certified Five Manhattan West project, the call of tenants for improved digital infrastructure is undeniable.
“Investors, developers and building owners who are here to compete are certainly taking note,” he continues. “Together with Bessemer and Fifth Wall, WiredScore will continue expansion into new markets to work with commercial real estate owners and developers to improve connectivity infrastructure in their assets.”
Bessemer and Fifth Wall will fill board and board observer seats, respectively. The investment group also included minority participation from SterlingVC, Joshua Kushner and other angel investors.
WiredScore launched Wired Certification four years ago in partnership with then-Mayor Michael Bloomberg and the City of New York. Since the launch of the standard, more than 350 million square feet of commercial real estate in more than 1,000 buildings has been Wired Certified globally. The company has expanded operations from its native New York to the UK, France, Germany and soon, Canada.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
