RXR Provides $45M Recapitalization Loan for 308-Unit District Montvale Through North Carolina Investment Authority Partnership
RXR Capital Solutions has closed a $45 million loan to recapitalize District Montvale, a 308-unit multifamily property in Montvale, N.J. The financing was provided through RXR's $500 million partnership with the North Carolina Investment Authority, which supplies debt capital to real estate projects primarily in the New York metropolitan region.
The transaction was featured in Commercial Observer and was announced Oct. 5, 2026. It is a recapitalization rather than a property sale, and it comes as RXR continues to broaden its role as a source of flexible capital beyond its traditional development and property management business.
District Montvale Loan Details
District Montvale is located at 100 Market Street in Montvale, roughly 25 miles north of Times Square. The property opened in 2022 and is part of the larger DePiero Farm master development. It is 95% leased and includes 16,000 square feet of fully leased ground-floor retail space.
The $45 million loan equates to approximately $146,104 per apartment unit. The financing was arranged by JLL Capital Markets and funded through RXR Cardinal Venture, the $500 million real estate debt partnership between RXR and the North Carolina Investment Authority. The recapitalization gives the property's owner, Hekemian Group, access to debt capital.
RXR Capital Solutions Expands Multifamily Lending
The Montvale loan adds to the activity of the RXR Capital Solutions platform, which has closed more than $1.5 billion in transactions over the past two years and has invested in more than 10,000 multifamily units.
The deal also broadens RXR's exposure to multifamily credit without requiring the firm to acquire the underlying real estate. Institutional debt vehicles such as the RXR and North Carolina Investment Authority partnership can offer flexible structures for stabilized or near-stabilized assets at a time when banks and traditional commercial real estate lenders remain selective, particularly on refinancing and recapitalization transactions.
Northern New Jersey Multifamily Market Context
Northern New Jersey remains a relatively supply-constrained, high-cost multifamily market, though operating conditions are mixed. New Jersey's overall vacancy rate fell to 8.8% in the first quarter of 2026 from 9.7% at year-end 2025, while Northern New Jersey vacancy declined to 8.0%. New Jersey rents rose 7.2% year over year, according to KBC Advisors.
Underwriting remains sensitive to new supply, moderating rent growth and higher capital costs. A 2026 Northern New Jersey forecast anticipated a 30% slowdown in completions but still expected vacancy to rise slightly as new units entered the market. Apartment cap rates in comparable New Jersey markets were approximately 4.75% for suburban Class A properties and 5.10% for suburban Class B properties, with Class A and B cap rates widening by roughly 5 basis points in the second quarter.
In that environment, District Montvale's 95% leasing level and fully leased retail component present a relatively stable operating profile for a suburban multifamily loan. Lenders have placed greater emphasis on occupancy, rent durability and demonstrated cash flow, and the property's location within the New York metropolitan commuter and employment shed adds to its positioning.
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