A pair of real estate investment veterans have jumped ship at Blue Heron to start their own firm, Arboretum Partners in Raleigh.
Arboretum, a long-term oriented real estate investment management and development firm, launched last month and is the brainchild of a pair of Blue Heron Asset Management veterans, Michael Eubanks and Benjamin Grinnell.
The first fund, dubbed Arboretum Partners Co-Investment Fund 1, is a $29.2 million vehicle with 29 investors so far.
According to a securities filing, the fund was initially targeted to be $25 million. The firm reserves the right to raise up to $50 million, according the filing, which is dated Oct. 4.
Grinnell declined to comment on the new venture Tuesday, but he and his business partner are no strangers to raising private equity real estate funds.
Eubanks was promoted to a partnership role at Blue Heron in 2017 as it was closing on its second fund, at $39 million.
Grinnell joined Blue Heron as vice president of acquisitions and development in 2016, responsible for executing investments and development projects, according to a brief on his hire.
Blue Heron began as a real estate management group, flipping its focus in 2011 to investing capital through pooled investment funds.
And it’s executed some big deals. Earlier this year, for example, Blue Heron closed on the sale of the 164-unit Foster on the Park apartment complex to Stockbridge, a private equity real estate firm based in San Francisco, for $78.3 million.
In a LinkedIn post, Eubanks describes Arboretum as a “real estate investment management and development firm with a focus on enriching our local communities through the built environment.”
“This new venture has a foundation built on experience and relationships in some of the most exciting real estate markets in the country,” he states.
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