The Hekemian Group has secured $45 million in financing for the recapitalisation of District Montvale, a 308-unit residential complex that opened in 2022. The property is part of the larger DePiero Farm master development in Montvale, New Jersey.
The funds were provided by RXR and the North Carolina Investment Authority (NCIA). They originate from the RXR Cardinal Venture, a $500 million partnership between the two entities. The aim of this partnership is to provide debt capital for various real estate projects, with a primary focus on the New York metropolitan area.
The JLL Capital Markets Team, comprising Jose Cruz, Michael Oliver, and Elizabeth DeVesty, brokered the transaction. Russ Young, Head of Investments at RXR, noted that this investment reflects RXR's focus on residential properties in markets where strong demographics, limited new supply, and sustainable housing demand support long-term value creation.
Success of the Capital Solutions Platform
This transaction is further proof of the success of Scott Rechler's and RXR's Capital Solutions platform. Over the past two years, RXR has completed deals worth more than $1.5 billion through the platform. This includes several transactions in North Carolina and investments in over 10,000 residential units, as reported by the company.
District Montvale illustrates RXR's strategic shift away from a business model focused exclusively on development and property management. The property is located at 100 Market Street in Montvale, an affluent suburb in northern New Jersey, approximately 25 miles north of Times Square. It is 95 per cent leased and features 16,000 square feet of fully leased retail space on the ground floor.
Central Component of DePiero Farm
District Montvale forms the residential heart of DePiero Farm, which also includes the Shoppes at DePiero Farm. This is a 250,000 square foot farm-inspired retail district, anchored by a 128,000 square foot Wegmans supermarket. Other retail tenants include national brands such as Starbucks, Lululemon, and Chipotle.
Peter Hekemian, Senior Managing Director of The Hekemian Group, expressed satisfaction with the neighbourhood model established in Montvale and welcomed RXR as a long-term partner.
