RXR and North Carolina Investment Authority Close Structured Equity for Twelve03, a 329-Unit Multifamily Development in Charlotte
RXR and the North Carolina Investment Authority have closed a structured equity investment in Twelve03, a 329-unit multifamily development in Charlotte that marks the first phase of Centre South, a 16.7-acre mixed-use project led by The Fallon Company, the firms announced May 2.
The investment was made through the RXR Cardinal Venture, a $500 million partnership focused on providing flexible capital solutions across real estate opportunities. TD Bank separately provided $101 million in construction financing for the project, according to a Commercial Observer report linked in RXR's announcement.
Project Overview: Twelve03 and the Centre South Master Plan
Twelve03 will deliver a mix of 80% market-rate and 20% affordable housing units among the 329 total in what RXR described as one of the nation's fastest-growing markets. The development represents the first phase of Centre South, a 16.7-acre mixed-use development being led by The Fallon Company.
Structured Equity and the RXR Cardinal Venture
The capital for Twelve03 flows through the RXR Cardinal Venture, a $500 million partnership that RXR has structured to deploy flexible capital into real estate opportunities.
"Twelve03 reflects RXR's ability to deploy capital through our integrated platform to support high-quality developments in markets with strong long-term fundamentals," said Russell Young, Executive Vice President at RXR. "Through our partnership with NCIA, we are able to provide flexible capital solutions that advance transformative projects like Centre South while expanding access to much-needed housing in growing markets such as Charlotte."
The North Carolina Investment Authority participates as a limited partner in the venture.
Deal Structure and Parties
In the transaction, RXR serves as the general partner through the Cardinal Venture, while the North Carolina Investment Authority participates as a limited partner. The Fallon Company, as developer of Centre South, is leading the ground-up development of Twelve03. TD Bank provided the $101 million construction loan, as reported by Commercial Observer.