Real estate companies Dune Real Estate Partners and TF Cornerstone (TFC) have announced the creation of a new venture, Alta Residential, with an initial investment of $1 billion. The focus of this venture will be on converting office properties into residential units in major cities such as New York City, Washington DC, Boston, Charlotte, Raleigh Atlanta Dallas San Francisco and Los Angeles.
According to the two firms involved in this project, there is a significant opportunity for conversion from office to residential due to the current state of distress in the commercial real estate market and high demand for housing across the United States. They believe that this opportunity is comparable in scale to the trend seen after the global financial crisis where single-family rentals became popular.
Dune’s CEO Dan Neidich stated that investors have shown great interest in Alta as it provides access to high-quality urban residential properties. He also mentioned that they have already received considerable interest from various investors. The value proposition offered by Alta is attractive because it offers national-scale opportunities while delivering strong investment returns and addressing critical needs such as creating new housing options and promoting economic revitalization and sustainability. These factors make it an appealing option for investors.
One example of TFC’s successful conversion projects is The Fairfax on Manhattan’s Upper East Side which was previously used as FBI headquarters but has now been transformed into a luxury residential property under their management.
