Joseph Graziose, Executive Vice President, Residential Construction & Development, RXR

Invest: spoke with Joseph Graziose, executive vice president of Residential Construction and Development at RXR, about the progress of Veridea, a $3 billion mixed-use development, and RXR’s plans for continued investment in the Raleigh-Durham region. “A community needs a mix of residential, industrial, and retail development rather than relying only on houses. Veridea brings that diversity,” Graziose said.

What has driven RXR’s vision for the Veridea development, and what progress have you made over the past year?

Veridea is an approximately 1,100-acre mixed-use development that RXR took on in 2023. Several groups tried to develop it before RXR. The difference was that those groups were primarily homebuilders, while we are master developers.

We did not approach the project by asking how many houses we could build. We asked, “How can we create a community?”

When RXR evaluates national markets, we look for what we call “superstar regions.” They must check three boxes: education, healthcare, and strong leadership. The town of Apex checked those boxes. Because of our corporate culture, we quickly built strong relationships in the community. It is not a popularity contest; it is about integrating into the community and maintaining a two-way conversation that supports a successful project.

An undertaking of this scale requires infrastructure. Our first goal was designing the necessary sewer, water, and roadway networks. Over the past year, we have made incredible progress and invested approximately $100 million in infrastructure. We completed more than 3.5 miles of sewer pipe installed 30 feet deep in rock and crossing beneath Interstate 540. Roads have been paved, and landscaping and sidewalks are going in.

We also closed on approximately 250 acres with homebuilding company Lennar. The company is permitted for 1,077 homes across three products: single-family houses, townhomes, and stacked townhomes.

How will the North Carolina Children’s Health development shape Veridea and the surrounding region?

We learned about the North Carolina Children’s opportunity between Duke Health and UNC Health when five other sites were already under consideration. We moved into high gear, began discussions, and ultimately closed on 225 acres where the organizations plan to build what is expected to become the country’s second-largest pediatric health campus.

The site will give North Carolina its first freestanding children’s hospital.

The plans include a 500-bed inpatient facility, a 200-bed behavioral health component, and ancillary support services. We are working on roadway networks and permitting, and the organizations have indicated that they expect to break ground next year. Partial delivery is anticipated between 2030 and 2032, when the campus is expected to reach full-scale operation.

I never imagined when I first viewed the property that Veridea would become home to this children’s hospital. Once we understood what it could bring, including the economic benefits and its role within the master plan, it became a home run. The project is expected to create approximately 8,000 jobs. We are building housing, retail, and other amenities that will serve the people working there.

What other educational, residential, and commercial components are moving forward?

One of the earliest agreements I made was with Wake Technical Community College. I met with President Scott Ralls and the Wake Tech team before RXR owned the property. We had a handshake agreement for a campus before the acquisition closed because bringing an institution of Wake Tech’s quality to Veridea was more important than maximizing the price of the land.

Wake Tech is planning a three-building campus that will eventually serve approximately 3,000 students. The first building is expected to open in about three years. We also sold the Wake County Public School System a 25-acre site for a future 700-student elementary school.

We are creating a live-work-play environment designed for walking and cycling. Bus stops are already incorporated into our roads, although bus service has not arrived yet. We also agreed with the town to construct a bus mobility center within the next three years.

Construction has begun on Summit House, a 291-unit multifamily development. The tower crane is in place, and we expect move-ins by the end of 2027. We have also broken ground on two industrial buildings of approximately 120,000 square feet each. We are seeing significant leasing interest from sectors ranging from biotechnology to robotics.

We are a few months away from permitting the first 156,000 square feet of retail and office space at Veridea Crossings. It will offer food and beverage establishments, stores, fitness studios, and office space. We are also close to an agreement with an approximately 18,000-square-foot medical user. That phase should deliver around 2028.

What are the principal challenges of delivering a development of this scale?

I place the challenges into three buckets. The first is construction costs. We have seen the effects of tariffs, oil prices, and other pressures. You need to stay humble and hungry, purchase responsibly, and de-risk construction costs as much as possible. I spent six months interviewing general contractors before selecting Samet. The company has done a tremendous job and feels like an extension of our team.

The second challenge is meeting the market. We must carefully curate all the project’s components, particularly retail, so they complement rather than compete with each other. Each business should be distinctive, attract people, and offer long-term stability.

The third challenge is communication. We must explain the scale of what is happening and how the project will affect the community. Growth is more accepted in Raleigh than in some markets where I have worked, but people still worry about traffic, water use, and other impacts.

For example, we are undertaking a $15 million project on North Carolina Highway 55, negotiated with the North Carolina Department of Transportation and the town. It will add lanes, turn lanes, and traffic signals. Our goal is to put infrastructure in place that improves conditions, particularly during the project’s early years. Veridea has a 10- to 15-year development horizon, so occupancy will increase gradually.

How are sustainability, resilience, and quality of life incorporated into Veridea?

We have an environmental plan that guides the development. Some projects will pursue LEED (Leadership in Energy and Environmental Design) standards, while others will use different sustainability approaches.

Sustainability is not simply placing solar panels on a roof. It also means using responsible construction products sourced from sustainable markets and designing efficient building systems. Today, our heating and air-conditioning systems are electric rather than gas-fired, supporting our efforts to be good environmental stewards.

Walkability is another essential component. Wake Tech’s campus will be approximately an eight-minute walk from the first phase of Veridea Crossings. We built a tunnel beneath Forest Light Way so people can travel safely between the campus and retail area. The development will also have 10-foot-wide paths connecting its different sections.

Hundreds of acres will remain untouched, preserving streams and other natural areas. We negotiated a perpetual easement with the town of Apex so these open spaces will be available not only to Veridea residents and workers but to everyone.

As Veridea continues to take shape, RXR is partnering with McAdams to integrate sustainability and environmental stewardship into the foundation of the community. From transforming stormwater infrastructure into thoughtfully designed parks and constructed wetlands to incorporating native plantings, pollinator-friendly plantings, and habitat enhancements, these initiatives are designed to support biodiversity while creating meaningful spaces for residents and visitors to enjoy. 

Beyond site design, Veridea’s sustainability strategy includes preserving more than 200 acres of natural conservation areas, expanding pedestrian and bicycle connectivity, incorporating EV charging infrastructure, and implementing environmentally responsible practices such as dark sky lighting. As development progresses, RXR and McAdams will continue identifying new opportunities to enhance Veridea’s environmental impact and create a connected, sustainable community for generations to come.

We also committed to funding and constructing a 25,000-square-foot indoor recreation facility that will be transferred to the town, along with the bus mobility center. Our CEO, Scott Rechler, often says, “Doing good and doing well equals doing better.” You must support the communities where you operate, run a successful company, and find the balance between those responsibilities.

How does Veridea support Apex’s economy, and what are RXR’s plans for the region?

Veridea will create construction jobs, long-term employment, and significant tax revenue. Approximately 92% of Apex’s tax base currently comes from housing. A community needs a mix of residential, industrial, and retail development rather than relying only on houses. Veridea brings that diversity.

I spend part of every week looking for additional opportunities across the region, including office buildings and land. We want to expand RXR’s presence and grow the business in North Carolina. Given Veridea’s success and the recognition it is receiving, it makes sense to apply that experience to other opportunities.

We have had, and continue to have, a real pleasure doing business in North Carolina and Apex. The town’s leadership and staff have worked alongside us on a project moving at a fast pace.

Veridea has connected with the Apex community by attending PeakFest and serving as a sponsor at Peak City Pig Fest. We have felt welcomed, and I believe we have earned that trust through our commitment to the community.