Ironstate's multifamily project in Hoboken, New Jersey, is set to start breaking the ground. The Class A development, known as Hoboken Urby, has scored a $162 million senior construction loan.
PCCP, which has provided the financing, revealed that it was intrigued by the opportunity due to the city's strong fundamentals. According to data from the investment management firm, multifamily supply has been scarce, with Hoboken adding less than 400 units to the market over the past five years, with vacancy in the sector sitting at just 2.8 percent. Additionally, The Mile Square City has enjoyed a neaerly 50 percent population boom since 2000. That outpaces neighboring New York City by 40 percent over the period.
“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,” PJ Finley, vice president of PCCP, said in a statement.
“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 calls for 345 units, with the numbers getting divided into 220 one bedrooms, 29 studios, 61 two bedrooms and 35 three bedrooms. The property will include 38 affordable units, with the rest set to be priced at market rates. All units will consist of wood flooring, steel appliances, latch access control and walk-in showers. Plus, the 16-story asset will include 17,000 square feet of retail space and amenities such as a fitness center, a dog run area on the rooftop, a cafe and a concierge that's on site at all times.
Hoboken Urby's location at 256 Observer Highway is less than a quarter mile away from the Hoboken PATH station, which can get residents to Midtown and Lower Manhattan.
With construction set to begin immediately, Ironstate's development is scheduled for completion by early 2028.
The project will mark another Urby-branded one for Ironstate. Some 5,500 of its roughly 17,000 units developed since 2002 fit this category. The Urby residential concept aims to offer a modern luxury experience for tenants.
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