NEW YORK CITY — Dune Real Estate Partners (Dune) and TF Cornerstone (TFC) have formed a $1 billion venture aimed at converting office buildings into residential communities. The venture, dubbed Alta Residential, will initially target opportunities in Atlanta, Boston, Dallas, Los Angeles, New York City, San Francisco, Washington, D.C., as well as Charlotte and Raleigh, North Carolina.
Dune and TFC will source potential conversion opportunities on behalf of Alta Residential. The team will provide construction oversight of local joint venture developments. Additionally, TFC and Alta Residential plan to jointly develop conversion projects in New York City.
The two firms, which are both based in New York City, have identified the conversion of office buildings as a generational opportunity, due to the scale of distress in the office sector and high demand for housing across the United States. According to the joint venture, there is currently more than 18 million square feet (over 18,000 units) in some stage of redevelopment in New York City alone.
TFC has developed roughly 21 million square feet of residential and commercial properties. The developer previously completed 15 commercial-to-residential projects totaling 5 million square feet. Dune has raised more approximately $4 billion of equity capital through its real estate funds to date.