San Francisco, California--(Newsfile Corp. - November 15, 2024) - Webcor, a leading California-based commercial builder, today announced the formation of Webcor Ventures, LLC, a new entity designed to further Webcor's investment in emerging construction solutions.
As its inaugural investment, Webcor Ventures is partnering with R2 Building, a second-generation modular construction firm based in Oakland, California. Webcor makes the investment based on a vision shared with R2 for the future of off-site construction.
The investment aligns with Webcor's commitment to innovative and sustainable building methods that address key industry challenges such as efficiency and productivity, affordability, speed to market, and labor shortages.
Strategic Partnership for Innovation in Modular Construction
R2 Building, led by CEO Randy Miller, envisions a groundbreaking "real estate delivery platform" that brings together the perspectives of manufacturers, developers, and general contractors. By leveraging off-site manufacturing, R2 aims to provide high-quality housing solutions at a more affordable price point.
This collaboration also supports Webcor's mission to differentiate its delivery models and provide clients with efficient, scalable construction alternatives.
"Randy Miller and the team at R2 Building bring a wealth of knowledge and experience in the highly complex market of industrialized construction," said Webcor President and CEO Matt Rossie. "We are excited to leverage a partnership that involves multiple perspectives and experiences to find affordable and high-quality housing solutions."
"We believe that the future of construction lies in breaking down the barriers between manufacturing, development, and building. Partnering with Webcor allows us to combine our expertise in modular construction with their deep experience in large-scale project delivery," said Miller. "Together, we're not just creating buildings-we're creating a new way to deliver high-quality, affordable housing that meets the evolving needs of communities across North America."
A Vision for the Future of Construction
With the North American modular construction market projected to grow from $21.49 billion in 2023 to $34.82 billion by 2030, the partnership between Webcor and R2 Building arrives at an opportune time. As demand for affordable housing and eco-friendly construction solutions continues to rise, this collaboration positions both companies to capitalize on technological advances and shifting industry needs.
"Modular construction has the potential to reshape how we approach large-scale housing projects, from market-rate to affordable and student housing, and even hospitality," said Jit Pahilajani, Webcor Builders' Executive Vice President. "This partnership will strengthen our client relationships and expand our project pipeline, allowing us to innovate in ways that support the evolving demands of the commercial housing market."
This strategic investment in R2 follows the launch of its first multifamily project: 335 Third Street in Oakland's Jack London Square. Julian Marsh, a principal at project sponsor Align Real Estate, commented, "Leveraging R2's technology at 335 Third Street allows us to achieve significant cost savings-at roughly two-thirds the cost of traditional construction-while increasing efficiency, reducing waste, and enhancing sustainability without compromising quality." Webcor's investment also secures the company a seat on R2's board of directors, where Webcor Senior Vice President Todd Mercer, who heads up Webcor's innovation group, will represent the company. Mercer will act as a key conduit, facilitating the integration of modular technology into Webcor's operations and supporting the growth of Webcor employees through exposure to new skills and career opportunities in modular construction.
A Growing Sector and Strategic Investment
"Owning a stake in R2 aligns with our goal of differentiating our delivery models and exploring innovative construction solutions," added Rossie. "This investment allows us to offer modular housing solutions that address some of the industry's most pressing challenges-pricing, labor availability, and speed to market."
R2 Building has already made significant strides in modular housing, having launched its new Type I non-combustible steel building system for high-rise construction that features prefabricated foundations, unitized stair towers, elevator towers and mechanical shafts, and full pre-outfitted apartment models. Additionally, R2 is manufacturing steel-framed Accessory Dwelling Units (ADUs) and modular single-family homes for a range of B2B clients. As modular construction becomes an increasingly critical component of the construction landscape, Webcor's involvement will allow both companies to scale their efforts while benefiting from shared expertise.
"This work is not just about projects," Pahilajani added. "It's about learning, improving, and integrating modular solutions into all aspects of construction, either in part or as a whole."
Sidley Austin LLP acted as legal counsel to Webcor.
About Webcor
Webcor is a premier provider of commercial construction services, known for its innovative and efficient approach, wide range of experience, cost effective design-build methodology, skill in concrete construction, and expertise in building landmark projects. Webcor's mission is to build structures of superior quality with integrity, continuously improve its processes by employing the best talent in the industry and add social and economic value to its communities. Founded in 1971 and repeatedly honored as one of the Best Places to Work, Top California Contractors, Largest Bay Area General Contractors, Top Green Contractors, and Top Design-Build Contractors, Webcor has offices throughout the state in San Francisco, Alameda, San Jose, San Diego, and Los Angeles. More information is available on the Webcor website and on LinkedIn, Facebook, Threads, and Instagram.
About R2 Building
R2 Building is an innovator in modular construction, leveraging advanced manufacturing techniques to streamline building delivery. The company deploys large-scale modular engineering, fabrication, and assembly methods originally developed and refined in the shipbuilding industry, offering precision-engineered modular solutions that enhance speed, quality, and efficiency. With strategic off-site manufacturing facilities, R2 benefits from access to high-quality steel production and competitive labor costs, enabling the company to deliver cost-effective building modules while maintaining strict quality control. R2's mission transforms construction by integrating cutting-edge methods that reduce waste, shorten project timelines, and provide high-quality, affordable housing solutions. The company's approach allows developers, contractors, and communities to realize better outcomes in less time.
About Align Real Estate
Align Real Estate, LLC is a leading owner, operator, and developer of infill high-density residential projects with offices in San Francisco and Los Angeles. In addition to developing 335 Third Street in Oakland with R2, Align has delivered 1,000+ residential units in the Bay Area in the last five years including some of the region's leading multi-family properties such as The Landing, Chorus, and Fitzgerald in San Francisco.
Contact:
Shel Holtz, SCMP
Sr. Director, Communication, WEBCOR
sholtz@webcor.com
(510) 517-3845
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229393
SOURCE: Webcor
