Northmarq secures $78.3 million sale of Foster on the Park in Durham, North Carolina on behalf of Blue Heron Asset Management

DURHAM, NORTH CAROLINA (February 7, 2022) – Foster on the Park, the 164-unit boutique mixed-use property in the Central Park district of downtown Durham, has sold for a Raleigh-Durham record-setting price of $477k per unit or $78.3M. Allan Lynch, Jeff Glenn, and Andrea Howard, managing directors of Northmarq’s Carolinas investment sales team, represented the seller/developer, an affiliate of Blue Heron Asset Management, LLC of Raleigh, North Carolina. Stockbridge, a private equity real estate investment management firm, purchased the property.  

“Foster on the Park is a special place. While we are pleased with the outcome, we are as enthused by having been part of a collaborative team that worked very hard for many years to deliver thoughtful design, creative place-making, and an enduring community in downtown Durham. We’d like to thank all the many folks who contributed to Foster’s success and allowed us to deliver our version of downtown living with a breath of fresh air,” said Benjamin Grinnell, partner at Blue Heron. 

The jewel-box property is seamlessly integrated in its highly walkable urban environment, complete with 2,141 sq. ft. of ground floor retail leased to local bottle shop, The Glass Jug. Foster on the Park boasts a 94 WalkScore, billed as a “Walker’s Paradise,” where residents can easily walk to numerous restaurant options, shops, and entertainment venues, including Durham’s Central Park, Durham Farmer’s Market and Durham Food Hall as well as the soon to be Google-anchored Durham Innovation District.

“After observing the evolution of downtown Durham and the exceptional quality of Foster on the Park, we knew this would be a highly sought-after asset,” said Lynch. “We were thrilled by the result, and it is no surprise Foster on the Park established a new high-watermark for mid-rise pricing,” added Glenn. 

"As we continue to keep an eye on strategic markets like Durham, we are attracted to well-positioned assets that cater directly to the explosive growth within the surrounding area," said Stockbridge Managing Director David Nix. "Foster on the Park is a strong addition to our portfolio and we are optimistic toward the property's long-term success." 

The sale comes off the heels of a record-setting year for the multifamily market in 2021, with momentum forecast to carry over into 2022, according to a special Multifamily National Outlook recently released by Northmarq. In mid-2021, Blue Heron also sold through Northmarq the Indigo Apartments in Morrisville, NC for a then record-setting price of $121.9M. Multifamily market fundamentals quickly rebounded from the pandemic, with investors attracted to the sector’s explosive rent growth, tight vacancies, spiking absorption, and strong migration trends. These dynamic improvements in property performance led to a surge in investment capital flooding into the red-hot sector. Investors are recognizing attractive yields in multifamily that may be difficult to achieve elsewhere. Read the full report.