On Tuesday, Dune Real Estate Partners and development firm TF Cornerstone (TFC) announced the creation of a new venture called Alta Residential. This $1-billion partnership will focus on converting office properties into residential spaces in major cities such as New York City, Washington DC, Boston, Charlotte, Raleigh, Atlanta Dallas San Francisco and Los Angeles.
According to both firms involved in the venture, this is an unprecedented opportunity due to the current state of distress in office real estate and high demand for housing across the United States. They believe that this conversion trend will be comparable to the surge in single-family rentals after the global financial crisis.
CEO Dan Neidich of Dune expressed excitement about Alta’s potential as a means for investors to access top-quality urban residential properties. He also noted significant interest from various investors already. The value proposition offered by Alta is multi-faceted: it presents a national-scale opportunity with potential for attractive investment returns while addressing critical needs like creating new housing options and promoting economic revitalization and sustainability – all highly appealing factors for investors.
The Fairfax property on Manhattan’s Upper East Side serves as an example of what can be achieved through this type of conversion project; formerly used as FBI headquarters in New York City before being transformed into a TF Cornerstone residential property.
