Adai Announces Strategic Capital Raise Led By RET Ventures with Kilroy Realty

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FOR IMMEDIATE RELEASE:

Active Design Advisors, Inc. Announces Strategic Capital Raise Led By RET Ventures with Kilroy Realty 

Raise signifies massive shift with ESG + proptech leaders now investing in health as a business imperative

NEW YORK, NY; OCTOBER 11, 2022 — Active Design Advisors Inc. (Adai), an affiliate of the Center for Active Design (CfAD), the sole operator of Fitwel, today announced a strategic capital investment led by RET Ventures, a leading real estate technology fund focused on building cutting-edge proptech companies for the multifamily industry. Additional investment comes from Kilroy Realty, a nationally recognized commercial real estate leader committed to sustainability and health & wellness. RET’s investment comes from the RET Ventures ESG Fund (the “Housing Impact Fund”), which was raised primarily from multifamily owners, as ESG takes root in the multifamily sector.

In the wake of the coronavirus pandemic, demand for healthy buildings has never been higher and now the case for investing in them is even stronger. Adai’s strategic raise positions them as an industry partner across real estate asset classes. The raised capital will help Adai further drive current demand and dramatically increase the implementation of Fitwel’s evidenced-based, truly effective healthy building strategies — e.g. design attributes, amenities, and operational policies that boost tenant wellbeing — positively impacting human capital and real estate bottom lines across the global real estate sector. Additionally, Adai plans to enhance its tech platform for ease of use at an enterprise scale and increase its ability to generate benchmark data to underpin operational value creation. By advancing its technology, Adai will meet market demand for healthy buildings by providing the real estate industry with an on-ramp to implement practical strategies shown to be impactful by over 100 years of public health research.

With global ESG aligned assets on track to exceed $50 billion by 2025, third-party healthy building certifications will increasingly be relied upon as a viable framework for tracking and integrating health-related ESG metrics. Fitwel has seen steady growth in the number of certifications over the past five years, demonstrating growing awareness of the importance of healthy building practices to mitigate risk and respond to occupant demand. In 2021 alone, there was a 325% increase in the total number of Fitwel certifications, and a 288% increase in certified square feet since last year. Leading companies that have implemented Fitwel strategies include Boston Properties, Harrison St., Oracle, Nike, Gensler, and Meta. Adai’s continued investment and improvements in technology will keep Fitwel’s research-backed solutions current and adaptive to future market demands.

“We are witnessing a fundamental shift in demand as stakeholders increasingly consider the health and wellbeing of individuals inside their physical assets, which in turn drives market transformation,” said Joanna Frank, President and CEO of Adai. “This capital raise is essential to accelerating our ability to meet this increasing demand with data insights that unlock the value of promoting health across the real estate sector.” 

“On behalf of our Housing Impact Fund we are committed to pursuing technologies that enhance building health and sustainability, and Fitwel’s ability to improve the resident and tenant experience in commercial and multifamily properties makes this an ideal investment for us,” said Christopher Yip, Partner at RET Ventures. “As a certification system developed with the CDC, the Fitwel Platform has the rigorous scientific backing to deliver true value to building owners, whose tenants are increasingly prioritizing health as an amenity. With Fitwel’s growing suite of platform solutions giving owner-operators additional insight into both building performance and occupant health and wellbeing, we expect Fitwel to become an important tool for the CRE sector.”  

“As a demonstrated leader in sustainable commercial real estate, we will continue to bring an ambitious approach to health and wellness in building design and operation. We expect this to become a staple for best-in-class commercial buildings. Kilroy is proud to support Adai as they work towards scaling up the use and recognition of the Fitwel Platform,” said Sarah King, Senior Vice President of Sustainability at Kilroy Realty. 

About Fitwel
Fitwel is the world's leading certification system committed to building health for all. Generated by expert analysis of 5,600+ academic research studies, Fitwel is implementing a vision for a healthier future where all buildings and communities are enhanced to strengthen health and well-being. Fitwel was originally created by the U.S. Centers for Disease Control and Prevention (CDC) and U.S. General Services Administration. The CDC remains the research and evaluation partner for Fitwel. The Center for Active Design (CfAD), a global not-for-profit organization, maintains the Fitwel standard and conducts objective third-party assessments that lead to certified projects. CfAD's new business unit, Adai (pronounced "a-DAY"), is charged with expanding Fitwel to the global market, administering the program while providing best-in-class customer service and technical support. To learn more about Fitwel, please visit: fitwel.org

About RET Ventures
A leading real estate technology investment firm, RET Ventures is the first industry-backed, early-stage venture fund strategically focused on building cutting-edge “rent tech” — technology for multifamily and single-family rental real estate. RET invests out of its core venture funds and a newly launched Housing Impact Fund, backing companies that address a range of pain points for real estate operators. Through its deep expertise and connections, RET provides solutions to issues ranging from housing affordability and sustainability to risk management and operational efficiency. The firm’s Strategic Investors include some of the largest REITs and private real estate owner-operators and managers, who control approximately 2.4 million rental units worth $600 billion. For more information, please visit ret.vc

About Kilroy Realty Corporation
Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. The company is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. More information is available at kilroyrealty.com.

Although forward-looking statements contained in this release are based upon what Adai believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Adai undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

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Media Inquiries:
communicatons@centerforactivedesign.org

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