San Mateo-based Veev, a pioneer in modular construction for multifamily, townhome and single-family homes, is expanding into the East Bay, subleasing 506,925 square feet from Amazon at 2701 W. Winton Ave. in Hayward. The company, which recently raised $400 million in a Series D round, is looking to deploy the additional funds into its future growth, the San Francisco Business Times reports.
The expansion is part of Veev’s plans to scale its operations, expand construction and distribution to new markets and accelerate R&D initiatives that will make the production of high-quality Veev homes even more sustainable and cost-efficient, the company stated in a release announcing the fundraising in March of this year.
Veev is looking to transform the way homes are built by developing a proprietary panelized system that produces fully cladded walls, complete with mechanical, electrical and plumbing systems already included. This allows the walls of the structure to be delivered to the site ready for installation.
The company’s products have caught the eye of one national developer. In November of 2021, Miami-based Lennar announced that it would commit a new residential community as part of the company’s $200 million financing of Veev. Lennar will bring Veev into the development of a new Northern California community of 102 attached homes, which will represent the largest community to date exclusively featuring homes built with Veev’s proprietary and productized approach to design and construction, according to a release from the two companies.
This expansion comes at a time when Amazon has started evaluating some of its excess capacity across the region and more broadly across the nation. The technology behemoth announced in its March 31, 2022 Form 10-Q that it expects from time to time to evaluate its excess or insufficient fulfillment or data center capacity as it tries to continuously optimize the space it needs to meet its customer demand across the region.
The landlord, Black Creek Group, was represented by Sam Higgins of KBC Advisors in the deal, according to a web-based industry listing. Amazon, which signed the lease for the property in 2019, according to Compstak, has an obligation at the property until 2031.