October 3, 2018

Innovatus Capital Partners Announces Capital Facility with RAD Urban to Fund Transformative Construction Solutions

Partnership with Leader in Modular Construction Further Strengthens Innovatus’ Diverse Portfolio

Financing Facility to Extend RAD Urban’s Offerings to Third Party Developers and Expand Geographic Footprint

New York, New York, October 3, 2018 – Innovatus Capital Partners, LLC (“Innovatus” or the “Firm”), an independent adviser and portfolio management firm with approximately $1.6 billion in assets under management, today announced that it has entered into an agreement to provide $28 million in structured financing to RAD Urban, a leader in high-rise modular construction.

With their pioneering approach to high-rise construction, RAD Urban has brought advanced industrialization techniques from other sectors and leading, modular building technology to steel construction. RAD Urban is fundamentally transforming how modern, high-rise towers are built by addressing the core challenges of low productivity and high costs that have beset the construction industry for decades. Their differentiated approach is anchored in three core principles:

  • A single-source construction solution: RAD Urban is the sole point of contact from the initial architectural design to engineering, manufacturing, site-work, and erection of the building. By integrating these processes under a single contract, the confusion, errors, and overruns that often afflict traditional construction projects are significantly reduced.

  • Patent pending structural technology: RAD Urban invests extensively in research and development to create structural connection systems that allows for modular construction up to 40 floors with greater precision and structural integrity than standard steel construction.

  • Leading module manufacturer: RAD Urban’s customizable modules are produced in-house at their 160,000 square foot, unionized, lean manufacturing facility in Lathrop, California.

The results of this approach are high rise construction projects completed with 25-40% lower costs and in 25-35% shorter time periods than those built using traditional methods.

“The benefits of modular construction have been well-known but mostly theoretical for decades. RAD Urban is particularly well-positioned to deliver on these promised benefits,” said Joseph Schottland, a Partner at Innovatus. “They have a world-class team, proven experience in executing with this innovative approach and importantly, alignment with labor. We believe RAD Urban will make a step change in construction productivity and redefine high-rise construction practices. We look forward to partnering with RAD Urban’s experienced team as they deliver vital solutions to urban communities across the country.”

"We are pleased to partner with Innovatus, a prudent provider of targeted growth capital," said Randy Miller, Chief Executive Officer of RAD Urban. “Our company is at an important phase in our growth trajectory and this new capital along with their strategic support will enable RAD Urban to expand its capacity and market footprint, while marketing our technology for other developers. 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.”

About Innovatus Capital Partners, LLC

Innovatus adheres to an investment strategy that identifies distressed, disruptive and growth opportunities in the less obvious market segments across multiple asset categories with a unifying theme of capital preservation, income generation, and upside optionality. The Firm has a dedicated team of real estate investment professionals with deep experience in commercial real estate acquisitions, recapitalizations and asset management across core-plus and opportunistic real estate investments amongst all property types including office, retail, hotel, medical, industrial and warehouse. Innovatus and its principals have significant real estate experience with ventures that range from the creation of a CMBS lending group and servicing platform to making equity investments in developments and single asset purchases. Further information can be found at innovatuscp.com.

About RAD Urban

RAD Urban is disrupting the construction industry with vertically-integrated, manufacturing-based systems that deliver better, faster, and cheaper buildings. The company combines full life-cycle capabilities with modular technology and a patent-pending, lean manufacturing systems to transform construction from poorly managed chaos into a rapid-assembly site of prefabricated steel volumetric modules. The firm is led by seasoned executives that have successfully scaled small businesses into large businesses and large businesses into Fortune 100 companies, with a top-tier staff of engineers, architects, contractors, and financiers. RAD Urban is a Carpenters’ Union based signatory company that has successfully completed $169M of projects and has $236M of construction underway and $741M in pre-construction.


Jonathan Keehner / Julie Oakes / Kate Clark
Joele Frank, Wilkinson Brimmer Katcher