Dune and TDI Form $1B Multifamily JV

Dune Real Estate Partners and TDI Real Estate Holdings L.L.C. have thrown a joint-venture hat into the multifamily investment ring–a very popular place to be right now–with the recent formation of a $1 billion entity they are calling TDI/Dune Real Estate Investments L.L.C. (TDI/Dune). The thrust of the JV will be to acquire and develop multifamily assets throughout the United States.

Earlier this year the venture closed on a $62 million, 244-unit apartment development in Los Angeles and a $25 million, 288-unit acquisition in the Dallas/Fort Worth area. According to the partners, the JV will seek to capitalize on the multifamily market’s new dynamics, created by turbulent economic conditions in the last few years.

“The shift away from homeownership toward rental properties, along with rental rate growth due to economic recovery and limited new supply, is creating very attractive opportunities to invest in multifamily assets,” Cia Buckley, a partner with Dune Real Estate Partners, tells MHN. “The Dune/TDI joint venture is well positioned to capitalize on the strong fundamentals underlying the multifamily sector.”

Both partners bring considerable multifamily experience to the task at hand. TDI/Dune management is comprised of former executives of multifamily specialist JPI, and have acquired and developed over $11 billion of multifamily investments over the past two decades

The Dune Real Estate Funds were launched in 2005 to make opportunistic investments in various real estate assets, portfolios and JVs worldwide. The funds, which are managed by Dune Real Estate Partners L.P., generally target distressed opportunities, as well as underperforming and undervalued assets and portfolios. Current the funds have over $1.5 billion under management. TDI Real Estate Holdings was launched last year to make forays into multifamily investment.