PCCP has provided a $162 million senior construction loan to an affiliate of Ironstate for the ground-up development of Hoboken Urby, a 345-unit, Class A, transit-oriented multifamily project located at 256 Observer Highway in Hoboken, New Jersey.
Situated on 1.1 acres, Hoboken Urby will sit prominently on the corner of Observer Highway, the southern border of Hoboken, and Park Avenue, less than a quarter of a mile from the Hoboken PATH station and conveniently walkable to Hoboken’s primary retail thoroughfare, Washington Street. The 16-story, 418,332-square-foot (sf) project will include 307 market-rate units and 38 affordable units. Along with extensive amenities and open spaces, there will be approximately 17,000 sf of retail space, which will include a café.
“PCCP believes this loan represents an opportunity to finance the construction of a sizeable, Class A, transit-oriented multifamily property in Hoboken on behalf of Ironstate, a borrower with an exceptional local track record,” said PJ Finley, Vice President with PCCP. “Hoboken’s rental market features some of the strongest supply-demand fundamentals in the U.S. and we believe Hoboken Urby will contribute to the placemaking in southern Hoboken.”
The property is planned for 29 studios (8% of units), 220 one-bedrooms (64%), 61 two-bedrooms (18%), and 35 three-bedrooms (10%). Units will feature stainless steel appliances, engineered wood flooring, custom shelving, Terrazzo tile in bathrooms, walk-in showers, and latch access control. On-site amenities will include a café, speakeasy, 24/7 concierge, landscaped amenity deck with BBQ grills, fitness center, and rooftop dog run, among others.
PCCP believes the property’s lease up will benefit from strong supply-demand fundamentals in Hoboken. Per CoStar, over the past five years, Hoboken has added fewer than 400 multifamily units due to land scarcity and a lengthy entitlement process. In addition to limited deliveries, population has surged nearly by 50% since 2000, significantly outpacing New York City’s 10% increase over the same period leading to the current 2.8% vacancy rate.
