Blue Heron Sells Durham Community for $78M

2 min read

NorthMarq represented the seller in the deal.

Foster on the Park. Image courtesy of Blue Heron Asset Management

Blue Heron Asset Management has achieved another record-breaking sale in the Raleigh-Durham metro. The firm has sold Foster on the Park, a 164-unit community in downtown Durham, N.C., to Stockbridge for $78.3 million, representing a sale price of $477,000 per unit.

NorthMarq’s Allan Lynch, Jeff Glenn and Andrea Howard represented the seller, who also developed the community. Looking to address the demand for urban residential housing in the Durham submarket, Blue Heron secured construction financing and began building Foster on the Park back in May 2018. According to Yardi Matrix data, First National Bank of Pennsylvania provided the more than $23.8 million construction loan for the mixed-use project. Blue Heron delivered the community’s first units and the leasing office in July 2020.

Since then, the community has reached 92.7 percent occupancy for its one-, two- and three-bedroom units that range from 576 to 1,620 square feet, according to Yardi Matrix data. The units were built with Nest thermostats, Google Fiber compatibility and washers and dryers, while some units feature a private patio or balcony, a double-sink vanity and an entryway bench. Foster on the Park’s amenities include a fitness center, saltwater pool and lounge, terrace, library, yoga room, package room, pet spa, fire pit, electric car charging station and bike storage.

Blue Heron also built the community with 2,141 square feet of ground floor retail, which is currently leased to a local brewery. Foster on the Park was rated as a highly walkable community, being located within walking distance to several restaurant, retail and entertainment options. David Nix, managing director for Stockbridge, said in prepared remarks that the company is attracted to well-positioned assets that cater to an area’s explosive growth, particularly in markets like Durham.

ANOTHER RECORD-SETTING SALE

Blue Heron’s sale of Foster on the Park comes several months after it sold Indigo Apartments, a 489-unit community that’s also in the Raleigh-Durham metro, for a record-setting price of $121.9 million. The firm first acquired the community back in December 2018 and completed several renovations to the unit interiors and amenity spaces. Blue Heron still has one other current investment in the metro, the 229-unit 810 Ninth community that was stabilized by late 2017.

Since its founding in 2011, the firm has grown its portfolio across the high-growth metros of the Southeastern U.S. Some of Blue Heron’s past investments include communities in Orlando, Fla.; Nashville, Tenn.; and Frederick, Md.

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