HOBOKEN, N.J. — PCCP, LLC has announced it is providing a $162 million senior construction loan to an affiliate of Ironstate Development for the ground-up construction of Hoboken Urby, a 345-unit Class A multifamily community located at 256 Observer Highway.
The project sits on a 1.1-acre site along the southern border of Hoboken, prominently positioned at Observer Highway and Park Avenue. Its location places it within a five-minute walk of the Hoboken PATH station and just a short distance from Washington Street, the city’s primary retail corridor.
When completed, Hoboken Urby will rise 16 stories and span 418,332 square feet, blending high-end residences, retail, and community spaces. Plans call for 307 market-rate apartments and 38 affordable units, complemented by 17,000 square feet of ground-floor retail, including a café designed to serve both residents and the neighborhood.
“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.”
Hoboken Urby has been designed with a mix of 29 studios (8%), 220 one-bedrooms (64%), 61 two-bedrooms (18%), and 35 three-bedrooms (10%), appealing to young professionals, families, and commuters alike.
The apartments will include stainless steel appliances, engineered wood flooring, Terrazzo-tiled bathrooms, walk-in showers, and custom shelving. Residents will also benefit from latch access control systems for secure, keyless entry.
The development emphasizes community and lifestyle-driven amenities, including:
The Hoboken rental market has seen limited new supply due to land constraints and lengthy entitlement processes. According to CoStar, the city has added fewer than 400 multifamily units in the last five years, despite surging demand. Meanwhile, Hoboken’s population has grown nearly 50% since 2000, far outpacing New York City’s 10% growth rate over the same period.
With demand for luxury rental housing on the rise, Hoboken maintains a low vacancy rate of just 2.8%, making the Urby project well-positioned to lease quickly once completed.
For Ironstate, Hoboken Urby represents another major investment in the region where the developer has an established footprint. Beyond delivering housing, the project is expected to enhance the Observer Highway corridor, turning underutilized land into a vibrant residential and retail hub.
Originally reported by Yield Pro.
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