NEW YORK, Feb 6 (Reuters) - Commercial real estate analytics firm Reonomy said on Tuesday it raised $16 million from Bain Capital Ventures and property mogul Barry Sternlicht, among others, to meet growing industry demand for machine-analyzed data from disparate sources.
New York-based Reonomy also announced a partnership with Newmark Knight Frank, a large commercial real estate advisory firm that is a unit of global brokerage BGC Partners Inc .
Reonomy has now raised $38.4 million since 2013. The new round was funded by JAWS, the family office of Sternlicht, chairman of investment firm Starwood Capital Group and Starwood Property Trust Inc, a real estate investment trust; real estate brokerage Marcus & Millichap and billionaire businessman John Catsimatidis, among others.
Reonomy takes disparate data about a commercial real estate property to create a composite view of the asset, using both public and third-party information, said Richard Sarkis, the firm’s founder.
Reonomy also has been building a database to identify the owners behind limited liability companies to help underwriters of commercial real estate debt better assess an asset’s risk, he said.
Reonomy will use the funds to develop new products and use technology, such as machine learning, to gather data in an industry that often uses manual input, Sarkis said.
Information for commercial real estate is dominated by Washington-based CoStar Group Inc, with a market capitalization of $12.4 billion.
CoStar has no real competition and is so far ahead in the commercial real estate data business that it is unrealistic for new entrants, said Brad Schwer, a Morningstar analyst.
“What we are seeing are companies honing in on subsections of particular markets. But in terms of taking on the country as a whole, we view it as a hopeless endeavor,” Schwer said.
Reporting by Herbert Lash; and Leslie Adler