Parker White, director of commercial real estate at Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI), joined REIT.com for a video interview at NAREIT’s 2017 Leader in the Light Working Forum at the Hilton Austin in Austin, Texas.
Hannon Armstrong makes debt and equity investments in sustainable infrastructure projects. White explained that the types of projects Hannon Armstrong finances range from complex infrastructure to LED lighting retrofits.
Increasingly, Hannon Armstrong is seeing more “deep retrofits” and the integration of different kinds of projects, such as a rooftop replacement coinciding with a solar installation, White explained.
Meanwhile, as the cost of equipment has come down, the economics are improving at the fundamental level, White said. That is resulting in quicker payback periods and better returns for conventional equity investments.
The biggest trend Hannon Armstrong is now seeing on the economic side is the introduction of financing, notably Property Assessed Clean Energy (PACE) opportunities.