HFF Closes Recap of NC Community, Arranges New JV Equity

The Dickson family will co-own Solis Ninth Street with Blue Heron Asset Management LLC. Terwilliger Pappas Multifamily Partners sold its stake in the 229-unit property.

HFF closed the recapitalization of Solis Ninth Street, a 229-unit, Class A multifamily asset in Durham, N.C. The firm assisted the Dickson family, which has been involved in property since its rezoning. The family’s joint venture developer and co-owner, Terwilliger Pappas Multifamily Partners, sold its stake in the asset. HFF also arranged a new joint venture equity partnership with Raleigh, N.C.-based Blue Heron Asset Management LLC. This is the sixth acquisition for Blue Heron’s Real Estate Opportunity Fund II.

Located at 810 9th St., the multifamily asset is in the heart of Durham County, just minutes from Duke University, Duke Medical Center, Whole Foods, Harris Teeter, as well as various restaurants, shops, gyms, bars and entertainment venues. Completed in 2016, the property has 229 units spread across 187,961 square feet, with an average unit size of 821 square feet. Amenities include a saltwater swimming pool, outdoor lounge with grilling area and fire pit, fitness center, an 8,000-square-foot clubhouse, business center, coffee bar, pet spa and garage parking. The property also has 10,000 square feet of ground-floor retail space. The asset is in the process of being rebranded as 810|Ninth.

“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,” said Blue Heron Managing Partner Maurice Malfatti, in a prepared statement.

The HFF team involved in this deal was led by Managing Directors Justin Good and Jeff Glenn and Directors Cory Fowler and Allan Lynch.

Video courtesy of Solis Ninth Street