Even as looming tariffs threaten to disrupt supply chains and blow up the budget, the developer of a massive mixed-use project in Apex is charging ahead.
New York-based RXR is investing $166 million to improve the town’s sewer infrastructure, laying the groundwork for its sprawling “mini-city” Veridea on roughly 1,100 acres between U.S. Highway 1 and N.C. 540.
In the same week the public works officially broke ground, President Donald Trump led a tit-for-tat trade war, imposing sweeping new duties on imports critical for construction like steel and aluminum.
RXR executive vice president Joseph Graziose shrugged off concerns.
“Sure, tariffs will impact any project,” he said. “But I’ve been in this [business] for 42 years. The economics are going to be what they’re going to be. I’m less concerned about tariffs and more concerned about getting things moving.”
As of Friday, the U.S. has imposed a 10% baseline tariff on all trading partners, announced new levies on all steel and aluminum imports, and doubled down on all Chinese imports, raising levies to a whopping 125%.
It’s also imposed a 25% tariff on goods from Canada and Mexico that are not compliant with the U.S.-Mexico-Canada Agreement.
The National Association of Home Builders estimates proposed new tariffs on China, Canada and Mexico could raise the cost of imported construction materials by “up to $4 billion.”
Even if some of the tariffs don’t take effect, it’s created uncertainty in the market, said Tyler Kelley, senior vice president at Samet Corp. The Greensboro-based firm is constructing Phase I of the $3 billion Veridea project.
“It’s hard for us to navigate,” Kelley said. “What our clients are looking for from us is cost certainty. And when we have a market that’s volatile, how can I give [that]?”
Samet is working on 20 large-scale residential projects across the state, including Veridea. Kelley said his team has been proactively purchasing materials in anticipation of tariffs.
“When we entered this project, we saw what was coming and we collaborated [with RXR],” he said. “We identified products to get to site in advance. We’re trying to bill ahead and keep our subcontractors’ cash-flow positive.”
To date, Veridea is on track. Work is expected to begin on multifamily units in late 2026, Kelley said.
Veridea has been in the works since 2011. The property’s previous owner, Hudson Realty Capital, began assembling the land 17 years ago. But it hit legal roadblocks and never got its project off the ground.
RXR started scouting land in 2022 and eventually purchased multiple parcels for $91 million in March 2023, according to property records. The Triangle-shaped site sits along N.C. 55, about two miles south of downtown Apex, and about 15 miles southwest of Raleigh.
RXR is working with the Town of Apex to develop the Big Branch Sewer Basin and improve drinking and waste water. The upgrades will pave the way for the project’s first phase. That includes 1,500 multifamily units to be built by RXR and 1,100 single-family houses and townhomes to be developed by Lennar Corp.
An entertainment district — with 200,000 square feet for retail, restaurants and office — and a new elementary school are also in the works.
Separately, RXR has partnered with Wake Technical Community College to build a new 340,000-square-foot campus.
On a muggy afternoon last Thursday, RXR celebrated the project’s latest development with speeches, local favorite Mr. A’s Beignets and a ceremonial “manhole” signing.
Apex Mayor Jacques Gilbert even turned up in his Gold 32 boots.
“This has been a 16-year journey, and RXR is ready to make it happen,” Gilbert told the 30-strong gathered. “Growing up here as a young man, I never thought I would see something to this magnitude. It will be transformitive.”
As Apex’s population swells to over 72,000, demand for housing remains at an all-time high. The town estimates that by 2030, more than 120,000 people could be living in this satellite town of Raleigh.
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Chantal Allam covers real estate for the The News & Observer and The Herald-Sun. She writes about commercial and residential real estate, covering everything from deals, expansions and relocations to major trends and events. She previously covered the Triangle technology sector and has been a journalist on three continents.