Done Deals: Blue Heron Asset Management Closes Construction Loan for Foster on the Park in Durham, NC

Friday, May 18, 2018

Blue Heron Asset Management Closes Construction Loan for Foster on the Park in Durham, NC

Benjamin Grinnell

DURHAM, NC -- Blue Heron Asset Management, a leading private equity real

estate investment and development firm based in Raleigh, has closed a construction loan with
First National Bank, the largest subsidiary of F.N.B. Corporation (NYSE: FNB), for Foster on the
Park, a boutique multifamily and retail project adjacent to Central Park in Durham, North Carolina.

Foster on the Park will be a 164-unit boutique apartment community with ground floor
retail/restaurant space overlooking Central Park - the city's main urban park which hosts a twice weekly

Farmers Market, food truck rodeos, and community and social events. The development
is also adjacent to the 1.7 million square foot Durham Innovation District as well as the Historic
Durham Athletic Park.

Chris Moore

“We’re extremely excited to close our financing with FNB, begin the construction of Foster on the
Park and see our collective vision head towards reality." said Benjamin Grinnell, project lead and partner at Blue Heron Asset Management.

"Our entire team has worked diligently over the last few years to collaborate with the City of Durham, Durham Central Park, Downtown Durham Inc., and other local stakeholders.

"Our focus has been on thoughtful place-making and trying to create a vibrant community with great walkability and access to downtown Durham’s growing job base, renowned dining, and its many lifestyle, recreation and entertainment amenities. Foster on the Park represents the types of infill re-development opportunities that we hope to continue to pursue and invest in,”

Chris Moore, President of FNB’s Raleigh-Durham Region, added, “We are pleased to provide the financing for Foster on the Park under the experienced leadership of Lewis Bass, our Regional Manager of Investment Real Estate Banking. Contributing to our communities is part of our mission at FNB, and it is a privilege to partner in a project that builds on downtown Durham’s momentum as a thriving destination for residents, businesses and visitors alike.”

Roger Edwards

The financing was arranged by the HFF team of Roger Edwards, Justin Good, and Henry Sisson.

“Blue Heron secured one of the best sites in downtown Durham and have created an amazing
project that we expect will be hugely successful. We are excited to be a part of the team and
contribute to making this great project a reality,” said Roger Edwards.

In addition to Blue Heron Asset Management, FNB, and HFF other team members include
Resolute Building Company as the general contractor, Cline Design Associates as the architect,
Coulter Jewell Thames as the civil engineer, JLL as the owner’s representative and Bell Partners
as the property manager.

The project, located at 545 Foster Street, is slated for completion in the first quarter of 2020.

Blue Heron Asset Management, LLC, based in Raleigh, North Carolina, is a private equity real
estate investment management firm.

The firm seeks to achieve superior risk-adjusted returns within well-balanced and actively-managed investment funds. Founded in 2011, Blue Heron’s track record demonstrates a firm that is disciplined, focused, and committed to sound real estate fundamentals.

The firm manages discretionary, opportunistic co-mingled funds with a primary focus on multifamily and mixed-use real estate assets in high-growth southeastern markets. Blue Heron strives to be a trusted and reliable real estate investment manager, a mindful steward of the real estate and communities in which it invests, and a long term partner that measures success in decades, not years.

For more information, please contact:

OLIVIA HENNESSEY

HFF Public Relations Specialist

(713) 852-3500

ohennessey@hfflp.com