The Hekemian Group Scores $45M Recap From RXR, North Carolina Investment Authority

The Hekemian Group has secured a $45 million loan to recapitalize District Montvale, a 308-unit multifamily property that opened in 2022 and is part of the larger DePiero Farm master development in Montvale, N.J., Commercial Observer can first report. 

RXR and the North Carolina Investment Authority (NCIA) provided the debt, which comes out of RXR Cardinal Venture, a $500 million partnership between the two entities to provide debt capital into different real estate projects, largely targeting New York’s metropolitan region. 

The JLL Capital Markets team of Jose Cruz, Michael Oliver, and Elizabeth DeVesty arranged the transaction. 

“This investment reflects RXR’s focus on residential assets in markets where strong demographics, limited new supply, and durable housing demand support long-term value creation,” said Russ Young, head of investments at RXR in a statement. 

The deal marks yet another father in the cap of Scott Rechler and RXR’s burgeoning Capital Solutions platform. 

Over the past two years, RXR has closed more than $1.5 billion of deals in the platform, including multiple deals in North Carolina, and has invested in over 10,000 multifamily units, according to the firm.  

District Montvale is yet another example of RXR’s move away from a business model centered strictly around development and property management. Located at 100 Market Street in Montvale, an affluent northern New Jersey suburb 25 miles north of Times Square, the property is 95 percent leased and has 16,000 square feet of fully leased retail on its ground floor. 

District Montvale is the residential centerpiece of DePiero Farm, which includes the Shoppes at DePiero Farm, a 250,000-square-foot, farm-inspired retail district anchored by a 128,000-square-foot Wegmans. Retail tenants include national brands Starbucks, Lululemon and Chipotle. 

“We’re very proud about the neighborhood model we’ve built in Montvale and could not be more pleased to welcome RXR into our long-term partnership,” said Peter Hekemian, senior managing director of the Hekemian Group, in a statement. 

Brian Pascus can be reached at bpascus@commercialobserver.com.