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Dune, TF Cornerstone Launch $1B Office-to-Residential Venture
Dune Real Estate Partners and development firm TF Cornerstone (TFC) said Tuesday they had created a $1-billion venture, Alta Residential, to convert office properties to residential. The venture expects to initially target opportunities in New York City, Washington, DC, Boston, Charlotte, Raleigh, Atlanta, Dallas, San Francisco and Los Angeles.
The two firms have identified the conversion of office buildings to residential as a generational opportunity, given the scale of the distress in office real estate and the unmet demand for housing in the U.S. They believe that the conversion opportunity will compare in scale to the single-family rental trend following the global financial crisis.
“Investors have reacted very positively to Alta as a means to access high-quality urban residential, and we have already received significant interest from a wide range of investors,” said Dan Neidich, CEO of Dune. “The value proposition created by Alta is exciting in that it represents an opportunity at a national scale; has the potential to deliver compelling investment returns; supports the critical need to create new housing; and advances economic revitalization and sustainability. Each of these categories individually are very attractive to investors — and Alta combines all four.”
Pictured: The Fairfax, a TF Cornerstone residential property on Manhattan’s Upper East Side that formerly served as the FBI’s New York headquarters.
- ◦Sale/Acquisition
- ◦Development
