Hoboken, New Jersey, August 29, 2025
News Summary
A $162 million senior construction loan has closed to fund a 345-unit Urby development on Observer Highway at Park Avenue in southern Hoboken. The transit-oriented, 16-story mixed-use project will deliver market-rate and affordable apartments, roughly 17,000 square feet of ground-floor retail, and extensive resident amenities including a rooftop dog run, landscaped courtyards, fitness center, and on-site café. The scheme replaces a former municipal garage and includes an attached 152-space garage. Construction is underway and the developer expects the building to meet strong rental demand and contribute to streetscape and placemaking efforts in the area.
Major Construction Loan Secured for Hoboken Urby; Building Work Underway
Key facts: $162 million senior construction loan, 345 apartments, work began in August 2025
A $162 million senior construction loan has been provided to an affiliate of Ironstate to build Hoboken Urby, a new 16‑story, 345‑unit transit‑oriented apartment project on a 1.1‑acre site at the southern edge of Hoboken. Construction began in early August 2025 and lenders expect the project to be finished in the next two to three years, though published timelines vary.
What the loan and the start of work mean
The financing positions the development to move from planning to full construction. The lender has indicated that construction would start immediately upon closing, and construction activity was reported to have begun on August 10, 2025. One timeline from project materials anticipates completion in early 2028, while earlier project announcements had cited summer 2027 as a target, reflecting differing completion estimates across sources.
Project basics and site
The project sits at the corner of Observer Highway and Park Avenue on Hoboken’s southern border. The address is variously listed as 256 Observer Highway and 265 Observer Highway in public reports. The property was formerly used for municipal parking and has been identified in local redevelopment planning as a priority site for revitalization.
Size, layout and unit mix
Plans describe a 16‑story building with portions stepping down to nine stories, totaling roughly 418,332 square feet (others describe the project as nearly 420,000 square feet). The development will contain 345 apartments — 307 market‑rate units and 38 affordable units. The unit mix includes 29 studios (about 8%), 220 one‑bedrooms (about 64%), 61 two‑bedrooms (about 18%), and 35 three‑bedrooms (about 10%).
Retail, parking and open space
The base of the building will include roughly 17,000 square feet of ground‑floor retail (one source lists 17,425 square feet), including an integrated café. Renderings show a two‑story retail presence at the southern corner with a second‑level terrace. An attached parking structure will provide space for 152 cars. The parking layout places one level of the garage available for retail parking, while the second and third levels are intended for residents.
Amenities, finishes and design team
The project emphasizes amenity spaces and landscaping. On‑site features include a café, a speakeasy, 24/7 concierge service, a landscaped amenity deck with grills, a fitness center, a rooftop dog run, and additional shared spaces. A fourth‑floor courtyard designed by an internationally known landscape architect will feature bamboo, garden beds, sunbeds, grill stations, a cold plunge pool, and a prominent fire pit pavilion. Select apartments will offer private terraces.
Interior finishes for units are planned to include stainless steel appliances, engineered wood flooring, custom shelving, Terrazzo tile in bathrooms, and walk‑in showers. Units will also include technology and security features described in project materials such as latch access control, dimmable lighting, and keyless entry. An interior design firm is listed for the homes, and an architecture firm is identified as the project designer in planning documents.
Transit access and neighborhood context
The site is less than a quarter mile from the Hoboken PATH station and is within walking distance of ferry terminals, New Jersey Transit routes, and the city’s main retail street, Washington Street. The development is part of a cluster of projects focused on Hoboken’s southeastern corner, which includes plans and ongoing work tied to station revitalization and nearby hotel and mixed‑use proposals. Local redevelopment plans adopted in recent years set expectations for arts and entertainment space, affordable and workforce housing incentives, pedestrian connections, and community uses in the wider area.
Approvals and evolution of the plan
Earlier filings and approvals show the project evolving from an initial plan that proposed 360 units with 40 affordable units to the version that received final approvals with 345 units and 38 affordable units. Project renderings show a facade with floor‑to‑ceiling windows framed by earth‑toned paneling, stepped landscaping around central outdoor spaces, tree‑lined sidewalks with planter beds, and terraces that open onto public edges.
Where the project stands now
With senior construction financing in place and ground work reported to be underway, the development team expects to proceed with vertical construction and tenant and retail leasing preparations in the coming months. Completion targets differ among documents, so the timeline will be updated as construction milestones are met and new schedule notices are issued.
Frequently asked questions
What funding has closed for the project?
The project secured a $162 million senior construction loan from a commercial lender to finance the ground‑up build.
Who is developing Hoboken Urby?
The development is being built by partners associated with the Urby brand and Ironstate. Design and landscaping firms are named in planning documents.
When did construction start and when will it finish?
Construction activity began in August 2025. Published completion estimates vary; some project materials indicate early 2028 while earlier communications projected summer 2027.
How large is the building and how many units will it have?
The project is a roughly 418,000 square‑foot, 16‑story building with 345 apartments, including 307 market‑rate units and 38 affordable units.
What amenities and finishes are planned?
Planned amenities include a café, rooftop dog run, fitness center, landscaped decks and courtyard with greenery and social features, 24/7 concierge, and more. Unit finishes include stainless steel appliances, engineered wood floors, Terrazzo bathroom tiles, walk‑in showers, and access control technology.
Is there parking and retail on site?
Yes. The project includes roughly 17,000 square feet of retail space and an attached garage with space for 152 cars. The garage layout dedicates the first level to retail parking and upper levels to residents.
How close is the site to transit?
The building is within a short walk of PATH, ferry terminals, and New Jersey Transit services, and is described as transit‑oriented and walkable to Washington Street.
Project at a glance: key features
| Feature | Detail |
|---|---|
| Construction financing | $162,000,000 senior construction loan |
| Developer / brand | Urby brand with Ironstate affiliate |
| Address / site | 256 / 265 Observer Highway; corner of Observer Hwy & Park Ave; 1.1 acres |
| Size | ~418,332 sq ft (nearly 420,000 sq ft), 16 stories (portions 9 stories) |
| Units | 345 total — 307 market-rate, 38 affordable (29 studios, 220 1‑beds, 61 2‑beds, 35 3‑beds) |
| Retail | ~17,000 sq ft (one source: 17,425 sq ft) including a café |
| Parking | Attached garage with 152 spaces; first floor retail parking; second and third floors resident parking |
| Amenities | Café, speakeasy, concierge, fitness, landscaped decks, rooftop dog run, fourth-floor courtyard with pool and fire pit |
| Transit | Less than 1/4 mile to PATH; close to ferry and NJ Transit services; walkable to Washington Street |
| Construction status | Groundbreaking / construction began August 2025; completion estimates vary (summer 2027 to early 2028) |
Deeper Dive: News & Info About This Topic
Additional Resources
- ROI-NJ: PCCP provides $162M construction loan for Hoboken Urby
- Wikipedia: Hoboken, New Jersey
- CoStar: PCCP provides loan for 345‑unit multifamily project in Hoboken
- Google Search: Hoboken Urby 256 Observer Highway
- New York Yimby: Hoboken Urby breaks ground at 256 Observer Highway
- Google Scholar: transit-oriented development Hoboken
- Jersey Digs: Urby Hoboken breaks ground
- Encyclopedia Britannica: Hoboken
- GlobeSt: Ironstate secures $162M loan for multifamily project
- Google News: Hoboken Urby
Author: Construction TX News
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