Integrated Business Systems (IBS) has announced the completion of financing that will enable it to deliver its property management and accounting systems software applications as a web-based/web-enabled product. A consortium of major real estate players is behind the funding of this multi-million dollar project - including Mack-Cali Realty Corporation, Vornado Realty Trust, Reckson Associates Realty Corp., Jack Resnick & Sons Inc. and The Feil Organization - all of which are IBS users.

Based in Fairfield, New Jersey, IBS is recognized in the New York metropolitan area as a premier provider of automated property management and accounting systems. Its software, currently a network-based system, contains more than 1,700 programs that address virtually all property management, accounting and construction management tasks. With a 22-year development history, the IBS package includes more than 5 million lines of source code and is used by the region's most prominent real estate companies.

"By web-enabling the IBS software, we will be able to lead in the new generation of Internet-based property management systems, potentially delivering our applications via an Intranet or via an Application Service Provider (ASP) model," noted Robert Entin, IBS president. "It will ultimately allow us to establish real-time connectivity with real estate transaction portals as they emerge."

The financing will be used primarily for research and development. More specifics on the new IBS technology and growth plan will be formally announced in the coming months.

IBS examined a number of options for its technology future, specifically focusing on how to leverage opportunities afforded by new Internet technologies. Ultimately, the organization sought a course that will enable it to grow from a regional to a national player.

"We have achieved great success in our geographical market niche, servicing more than 120 real estate owners and managers that control more than 500 million square feet of residential and commercial property," noted Robert Entin, IBS president. "Our reputation has grown steadily around our system capabilities, our service and support, and our in-depth partnership approach that we offer users.

"At the same time, significant opportunities exist to satisfy the needs of medium and large enterprises beyond our immediate market area," he added. "The financing will fund the 'next generation' IBS product, providing the tools needed to expand our user base on a national scale."

THE CONSORTIUM: INVESTORS AND DESIGN PARTNERS

The IBS funding consortium is the result of 18 months of exploring options for the company's future. "We were solicited as an acquisition target by a number of firms," Entin explained. "Additionally, we were approached as a potential joint venture partner and as a key player in several other scenarios. We also considered a company-sponsored investment. Ultimately, our main goal was to achieve a balance that would benefit the company, our employees and our clients. Our philosophy has always been 'service first,' and our strong sense of responsibility to IBS users was at the forefront of our decision-making process.

"We watched as more money was poured into real estate technology than ever before, including some 400 ventures with varying degrees of capitalization," he continued. "For the most part, the first wave included portal development efforts centered on providing ancillary services or enabling transactions. None of the ventures were aimed at rewriting or producing new back-office property management and accounting systems."

Entin and his team chose to remain patient, focusing on the ways in which the Internet paradigm shift will ultimately impact the real estate industry before making a move. "While the industry today enjoys more software written for it than ever before, the number of back-office systems providers is not growing," Entin noted. "In part, entry is barred by the extraordinary amount of intellectual capital needed to engineer solutions. Therefore, the market opportunities are enormous. Our strength is our 22-year history, and the existing IBS architecture and technology."

In addition, as an existing and profitable operating company, IBS has an advantage over a start-up in terms of the costs involved in achieving its goal, according to Entin. "We have revenues, clients and a firmly entrenched brand image," he said. "We have already grown our staff in anticipation of this project, and we are ready to move forward on the R&D component."

The funding sources - all of which manage large real estate portfolios using the IBS system- invested in the future of the company for a number of reasons. "These are real estate professionals who have continually explored competitive software and have remained committed to IBS because it runs their enterprises beautifully, and because no alternatives compare," Entin said.

The nature of the funding "partnership" transcends the financial components, as the companies involved will also contribute to the product design. "They will be active players in the development and overall functionality of the product," Entin noted. "This is a group of heavyweight real estate players that have chosen IBS to develop the product that will lead them into the next generation of real estate technology. The support of these organizations, our combined view of the market opportunities, and this new stage of development in our company's evolution are all very exciting milestones."

According to Entin, while today's market has its challenges, the timing is ideal for companies that are able to secure investors. "We expect another 12 to 18 months of downtime in the technology market," he said. "As a result, we have the opportunity to focus on our development efforts while the current economy also provides the advantage of available, top talent."

Fully staffed and funded, IBS is already moving forward in the application porting process. "With the backing of some of the most influential players in the real estate industry, we will be at the forefront of the next wave of technological advances as we look beyond our traditional market focus into a new, national arena," Entin concluded.

###

•	The Feil Organization is a diverse real estate enterprise with an extensive portfolio including New York City residential properties, various office and industrial properties, as well as retail space throughout the country.
•	Mack-Cali Realty Corporation is one of the nation's leading real estate investment trusts, with approximately 28.5 million square feet of Class A office and office/flex properties located primarily in the Northeast.
•	Reckson Associates Realty Corp. (NYSE: RA) is a self-administered and self-managed real estate investment trust (REIT) specializing in the acquisition, leasing, financing, management and development of office and industrial properties. The Company is one of the largest publicly traded owners, managers and developers of Class A office and industrial properties in the New York Tri-State area, with 182 properties comprised of approximately 20.6 million square feet.
•	Jack Resnick & Sons Inc. has developed, owns and manages more than 5 million square feet of commercial space in midtown and downtown Manhattan. The company also manages and rents a portfolio of more than 1,500 no-fee apartments.
•	Vornado Realty Trust is a fully integrated equity real estate investment trust that owns and manages approximately 66 million square feet of real estate. With holdings across four business platforms - Office, Retail, Merchandise Mart and Temperature Controlled Logistics - it is one of the largest property owners in New York City.