In a bold move that signals a shift in strategy, Charleston, South Carolina-based Greystar, the nation's leading multifamily owner, developer, and manager, is expanding its portfolio into the infrastructure sector. This expansion marks a significant evolution for the company, renowned for its dominance in the multifamily space. With infrastructure investment becoming increasingly vital to the modern economy, this strategic pivot offers a unique opportunity for investors to explore new avenues for growth.
Greystar's Strategic Expansion into Infrastructure
Greystar’s foray into infrastructure is driven by its recognition of the long-term growth potential in various sectors, including clean power, data centers, transition fuels, social infrastructure, and transportation and logistics facilities. These areas are not only critical to the ongoing development of urban areas but also align with global trends such as the energy transition and digital transformation. By entering these markets, Greystar is positioning itself at the intersection of real estate and infrastructure, offering a holistic approach to urban development.
Wes Fuller, Greystar’s Chief Investment Officer, highlights the strategic importance of this move, stating that the expansion will leverage Greystar’s global scale and the depth of its team. This approach will allow the company to capitalize on its extensive real estate platform while exploring new growth opportunities in infrastructure.
Leadership and Vision: Michael Hoverman’s Role
To spearhead this new venture, Greystar has appointed Michael Hoverman as its inaugural Executive Director of Infrastructure. Hoverman brings nearly two decades of experience in the infrastructure sector, with a proven track record at firms like CIM Group and Macquarie Infrastructure Corp. His expertise will be instrumental in building an in-house team of specialists who will drive Greystar’s infrastructure ambitions forward.
Hoverman’s vision for the new business is to seamlessly integrate infrastructure projects within Greystar’s existing platform. By leveraging the internal resources and scale of the broader Greystar business, Hoverman aims to tap into adjacent thematic opportunities, particularly in sectors experiencing long-term secular growth, such as energy transition, digitization, and transportation infrastructure. These sectors are critical to supporting the communities where Greystar is already active, further enhancing the company’s impact.
The Infrastructure Boom: Develop A Confluence of Opportunity
Greystar’s timing could not be better. The infrastructure sector is experiencing a significant boost, fueled by federal initiatives like the Infrastructure Investment and Jobs Act (IIJA), signed into law by President Joe Biden in November 2021. This act is set to distribute $1.2 trillion in grants to infrastructure projects over five years, with $454 billion already announced for more than 56,000 projects across the country.
This influx of federal funding has provided a much-needed buoy for the infrastructure sector, especially as other parts of the building industry have faced slowdowns in recent years. In 2024, infrastructure spending continues to surge, with $1.8 trillion in federal grants, loans, tax credits, and other financial incentives flowing into the economy, according to S&P Global. This wave of investment is creating fertile ground for new projects, particularly in areas like data centers and energy, where demand is skyrocketing due to rapid advancements in cloud technology and artificial intelligence.
The Convergence of Real Estate and Infrastructure: Unique Investment Opportunities
Greystar’s expansion into infrastructure is not just about diversifying its portfolio—it represents a broader trend of convergence between real estate and infrastructure. As urban areas continue to grow and evolve, the need for integrated infrastructure solutions that support sustainable development becomes increasingly apparent. For investors, this convergence offers a unique opportunity to create lasting value.
Data centers, for instance, are emerging as a critical component of modern infrastructure, driven by the exponential growth of data and the increasing reliance on cloud services. The demand for energy projects to power these centers is also rising, creating opportunities for investment in clean power and transition fuels. Similarly, transportation and logistics facilities are essential to supporting the flow of goods and people in a globalized economy, making them a key focus for infrastructure investment.
Global Reach: Scaling Infrastructure Investments Worldwide
While Greystar’s initial infrastructure efforts will focus on the U.S., the company intends to leverage its global platform and network to expand its infrastructure projects internationally. In markets where Greystar already has local, on-the-ground execution capabilities, the potential for infrastructure development is significant. This global reach positions Greystar well to capitalize on emerging opportunities in infrastructure, particularly in regions where urbanization and economic growth are driving the need for new infrastructure.
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