JLL Spark has made its first acquisition as the global real estate industry gets serious about embracing new technology, reports Real Estate Weekly.
The acquisition was of Stessa, a software platform that lets investors track, manage and communicate how their portfolios are performing. Stessa says its platform offers real-time insights with the goal of making managing real estate portfolios as easy as traditional equity management.
“Optimizing a real estate portfolio can involve tedious manual effort, which is why many investors see suboptimal returns,”said Mihir Shah, co-CEO at JLL Spark REW. “We chose Stessa as our first acquisition because it’s innovative product fills a gap in the market for small-to-medium investors.”
“As real estate investors ourselves, we created Stessa to solve the biggest pain points associated with our own investments – ongoing asset management and portfolio optimization,” Heath Silverman, CEO and co-founder of Stessa, said. “The JLL Spark acquisition will allow us to scale quickly and broaden our reach.”
Stessa has been in a beta testing process for the last year with a small collection of clients that represent almost half a billion dollars in income-producing properties. According to the company, its next-gen release should be available in the near future.
The Stessa acquisition is the most recent noteworthy investment by a significate commercial real estate firm into the property technology, or proptech space, which is relatively new.
This is in keeping with the vision last summer when JLL Spark was launched, and CEO Christian Ulbrich said the aim was to accelerate JLL’s drive to become the obvious global leader in digital real estate services.