D
une Real Estate Partners (Dune) has formed a new $1 billion venture with TF Cornerstone (TFC), a New York-based developer, to create Alta Residential. This joint effort aims to capitalize on the growing demand for housing by converting underutilized office buildings into residential spaces.

    The conversion of office buildings to residential units is seen as a significant opportunity due to the scale of distress in the office real estate market and the unmet need for housing across the US. In New York City alone, over 18 million square feet (approximately 18,000 units) are currently undergoing redevelopment.

    Dune and TFC will source, analyze, and oversee potential conversion projects on behalf of Alta, leveraging TFC's extensive construction capabilities. The team plans to develop certain conversions in partnership with local developers and joint ventures.

    TFC has a long history of successful conversions, including the transformation of 95 Horatio Street and The Fairfax into residential units. "Alta is well-positioned to respond to the current market by combining Dune's experience in opportunistic investing with TFC's unique conversion expertise," said Thomas Elghanayan, CEO of TFC.

    The venture has already garnered significant interest from investors, who see Alta as a means to access high-quality urban residential opportunities. Initial target cities for Alta include New York City, Washington DC, Boston, and other major metropolitan areas.

    Dune Real Estate Partners is a leading real estate investment firm focused on high-yielding equity investments resulting from capital markets dislocation. TF Cornerstone is a family-owned developer with over five decades of experience in residential and commercial development.