Humans still do significant finishing work on modules at Reframe Systems’ Andover “micro-factory,” like drywalling and plumbing, before the blocks are shipped to a site. Its robots scan QR codes Reframe prints on building materials to identify how parts fit into digital plans. Photo by James Sanna | Banker & Tradesman Staff
Armed with $40 million in new venture capital funding, Reframe Systems has leased 115,000 square feet for a new headquarters in Billerica.
The robotics-driven modular housing manufacturer settled on the 90 Salem Road property after considering more than 30 industrial properties inside Interstate 495, CEO and Co-Founder Vikas Enti said. Known as FAB1, it will house office, R&D and production space with capacity to complete up to 500 multifamily housing units annually, approximately 10 times its current capacity.
The latest round of funding was led by Energy Impact Partners. In August, Reframe Systems also was awarded an $800,000 tax credit from the Massachusetts Clean Energy Center as part of a new Climatetech Tax Incentives Program.
“The key pushback we got from our investors is why we were not looking at locating in New Hampshire and getting tax benefits and potentially lower costs,” Enti said. “We felt that was going to make it harder for us to attract the engineering talent that we needed. We felt like Massachusetts was still the right location for us to continue building this business, but had to find other ways to make sure we could reduce the tax burden and operating cost burden.”
Co-founded by former Amazon Robotics executives, Reframe currently fabricates modular housing at a pilot factory in Andover.
In its real estate search, Reframe Systems sought a location within a 20-minute drive to retain and attract engineering talent, Enti said. The requirements also included drive-in dock doors, outdoor storage and ample power capacity.
The company will share the property with tenants FedEx and Siegel Ingredients.
By using robots to automate parts of the construction process and building many parts off-site, company executives say they can drive down high construction costs that are inhibiting housing production.
Reframe has completed 10 homes and is scheduled to deliver 114 more over the next year. The company has an agreement to manufacture 68 cabin-style homes for an undisclosed New Hampshire development. It previously announced plans to manufacture 24 condominiums for a proposed development in Roxbury. The company also is wrapping up delivery of 12 homes at Devens after being selected by MassDevelopment to acquire a 2-acre site at 25 Adams Circle.
Reframe Systems plans a quick tenant fitout to install equipment and begin production on Oct. 5.
“We’re actively marching toward that audacious goal, and we’re pretty happy to have the landlord [Clarion Partners] partner with us to make sure we’re able to quickly turn the facility around,” Enti said.
90 Salem Road/Image courtesy of Reframe Systems
