As a global leader in investment, development, and management of real estate, Greystar has expanded into infrastructure. In conjunction with the expansion, the firm has hired Michael Hoverman as executive director of the new division.
Hoverman joins the firm with nearly 20 years of experience in infrastructure and is equipped to drive Greystar’s infrastructure strategy forward.
"For over 30 years, Greystar has been committed to improving the lives of people around the world by focusing on urban housing, an underinvested and undersupplied sector with long-term secular tailwinds that have persisted across market cycles," says Bob Faith, founder and CEO of Greystar. "Expanding into infrastructure is a natural progression for us as we continue to seek opportunities that support better living and provide high value to our residents."
To learn more about the move into infrastructure, MFE caught up with Hoverman.
What prompted Greystar’s expansion into infrastructure?
Greystar has always focused on themes that support better urban living and aims to provide more abundant, higher-value housing options at lower costs to its residents. The long-term secular growth trends that continue to benefit housing can also be found in certain sectors within infrastructure. Greystar has identified adjacent thematic opportunities in sectors offering long-term, secular growth, such as energy transition, digitization, and transportation infrastructure, to support the communities and residents where Greystar is already active.
With your extensive experience, what are some of your goals in your new role at Greystar?
Greystar's global scale and footprint offer a unique opportunity to positively impact the lives of countless residents around the world while enhancing the longevity and sustainability of real assets. My primary goal is to deliver on Greystar's objectives in a way that creates meaningful, positive outcomes for the people and communities we serve.
What are some of the priorities regarding infrastructure initiatives?
The first priority is building out a world-class team of infrastructure experts to seize the enormous opportunity we have at hand at Greystar.
How does Greystar plan to support better living for residents through cleaner air and water, and improved waste management infrastructure?
Over the course of my career, I have been focused primarily on sustainable infrastructure projects, such as utility-scale solar generation and battery storage, sustainable water management, renewable natural gas production, cell tower networks, data centers, and environmentally friendly waste management. Deploying these initiatives at scale to support growing urban markets can significantly impact the lives of Greystar's residents, and partners globally.
Why is more reliable, clean power and improved grid infrastructure increasingly important?
Advances in technology, like electric vehicles and artificial intelligence, are putting increasing pressure on power and grid infrastructure worldwide, especially in the United States. This unprecedented demand for clean, reliable power is making the energy transition challenging, with the potential for significant disruption. Substantial support in this sector is crucial to ensure a smooth and cost-efficient transition.
Is there anything you’d like readers to know about infrastructure development as a whole?
This is an incredibly exciting time to build an infrastructure business. What was once seen as a relatively unremarkable and stable asset class, due to its origins and low-risk profile, is now at the forefront of two major global trends: digitization and energy transition. The significant infrastructure build-out needed to meet the growing demand for energy and data is driving these mega-trends, creating substantial shifts in global markets. Greystar sees this as a prime opportunity to enter the infrastructure sector.
