Holliday Fenoglio Fowler, L.P. announced today that it has closed the recapitalization of and arranged joint venture equity for a 229-unit, Class A multi-housing and 10,000-square-foot retail property, formerly known as Solis Ninth Street, on Ninth Street in Durham, North Carolina.
HFF assisted the co-owner in the recapitalization of the property and also arranged a new joint venture equity partnership with Raleigh, North Carolina-based Blue Heron Asset Management, LLC. This is the sixth acquisition for Blue Heron’s Real Estate Opportunity Fund II. The Durham-based Dickson family, which has been involved in Solis Ninth Street since its rezoning, remain invested in the development. The family’s joint venture developer and co-owner, Terwilliger Pappas Multifamily Partners, has sold its stake in the property.
The property, which is in the process of being rebranded as 810|Ninth, is located at 810 9th Street within walking distance of Duke University, Duke Medical Center, Whole Foods, Harris Teeter, numerous restaurants, shops and other urban amenities, including local gyms, bars and entertainment venues. Completed in February 2016, the property has 229 units spread across 187,961 rentable square feet for an average unit size of 821 square feet. In addition to its central location, amenities include a saltwater swimming pool; outdoor lounge with grilling area and fire pit; fitness center with dedicated yoga and spin studio; clubhouse; business center; coffee bar; pet spa and grooming station, garage parking located in the center of the building; and 10,000 square feet of ground-floor retail.
The HFF team was led by managing directors Justin Good and Jeff Glenn and directors Cory Fowler and Allan Lynch.
Maurice Malfatti, managing partner of Blue Heron, commented, “We are bullish on Durham and believe in its growth and innovation story. 810|Ninth – our largest single investment to date – is a solid addition to our fund, which targets investments in southeastern U.S. markets, such as Durham, that exhibit strong job and population growth and diverse economic drivers. We love the walkability and neighborhood feel of Ninth Street and are excited to be part of the local ownership group that will own and operate the property for years to come.”
About Blue Heron Asset Management, LLC
Blue Heron Asset Management, based in Raleigh, North Carolina, is a private equity real estate investment management firm. The firm seeks to achieve superior risk-adjusted returns across a well-balanced and actively-managed portfolio. Founded in 2011, Blue Heron manages two discretionary funds, with $65 million in capital commitments.
Blue Heron’s track record demonstrates a firm that is disciplined, focused, and committed to sound real estate fundamentals. In addition to being a trusted and reliable fiduciary for its stakeholders, a core component of Blue Heron’s mission is to be mindful and accountable stewards of the real estate and communities in which it invests.
Blue Heron targets opportunities in some of the most diverse, highest-growth metropolitan economies of the United States, with a focus on the southeastern United States. Enhanced by over twenty years of average real estate experience of its team across multiple property types and market cycles, the firm couples macro-level analysis with granular local knowledge to formulate its investment strategy. Blue Heron capitalizes on deep, long-standing relationships to consistently cultivate a robust pipeline of opportunities and employs a replicable, scalable hands-on approach to create and drive value and harvest gains for each of its investments. www.blueheronassetmanagement.com
About HFF
Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp, a North Carolina licensed real estate broker.
