Billion Dollar Joint Venture Focused on Office-to-Residential Conversions

Dune Real Estate Partners and TF Cornerstone announced earlier this month the formation of Alta Residential, a $1 billion joint venture focused on converting underused office buildings into residential units in the United States.

As many urban office buildings face high vacancy rates, the partnership aims to transform these spaces into much-needed housing. In New York City alone, over 18 million square feet of office space—equivalent to more than 18,000 potential residential units—are currently being considered for redevelopment, according to a joint statement.

Dune and TF Cornerstone identified a “generational opportunity” considering the office market distress and unmet housing needs according to the statement. By repurposing these office buildings, the initiative seeks to revitalize downtown areas and minimize the environmental impact of new construction.

“Alta is strategically positioned to respond to the current market needs by combining Dune’s investment expertise with TF Cornerstone’s development experience,” said Thomas Elghanayan, CEO of TF Cornerstone. “As owners of underperforming office buildings reassess the best use of their properties, we believe we can quickly scale our efforts to meet the growing demand for housing.”

TF Cornerstone has completed 15 commercial-to-residential developments totaling nearly 5 million square feet, the company said. Spaces converted include 95 Horatio Street, a former refrigeration facility in Manhattan’s Meatpacking district that was converted to 318 residential units, and The Fairfax, a former FBI headquarters building in New York City that was converted to 313 residences.Dan Neidich, CEO of Dune, said, “This initiative combines the urgent need for new housing with a chance to revitalize urban areas and promote sustainability.”

The target cities for this initiative include New York City, Washington, D.C., Boston, Charlotte, Raleigh, Atlanta, Dallas, San Francisco, and Los Angeles—areas known for their high demand for housing and strong public transportation options.

Dune Real Estate Partners is a New York City-based investment firm specializing in high-yield real estate equity investments. TF Cornerstone is a family-owned real estate development company committed to long-term community engagement and management.

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