Construction underway at Hoboken Urby, a 16‑story, 345‑unit mixed‑use development at 256 Observer Highway in Hoboken.
256 Observer Highway, Hoboken, NJ, September 6, 2025
A $162 million senior construction loan has been approved to finance Hoboken Urby, a 16‑story, 418,332‑square‑foot Class A mixed‑use building at 256 Observer Highway. The project will deliver 345 apartments — 307 market‑rate and 38 affordable — with roughly 17,000–17,425 sq ft of street‑level retail, a 152‑space parking garage and a full suite of amenities including a café, speakeasy, fitness center, landscaped deck and rooftop dog run. BlueGate Partners led the capital execution for the developer affiliate, and vertical construction is already underway with completion expected within a few years.
A $162 million senior construction loan has been approved by PCCP to fund the ground-up development of Hoboken Urby, a 16-story, 418,332-square-foot mixed-use building at 256 Observer Highway on the southern edge of Hoboken, N.J. The loan was made to an affiliate of Ironstate Holdings, with the financing arranged and executed by BlueGate Partners on behalf of Urby and Ironstate.
The development will produce 345 residential units across a roughly 1.1-acre site at the corner of Observer Highway and Park Avenue. The unit mix includes 307 market-rate apartments and 38 affordable units. By size, the mix breaks down into approximately 29 studios (8%), 220 one-bedroom units (64%), 61 two-bedroom units (18%) and 35 three-bedroom units (10%).
The building will contain roughly 17,000–17,425 square feet of street-level retail, including a café, and a reported 152-space parking garage. On-site amenities will include a 24/7 concierge, a landscaped amenity deck with BBQ grills, a fitness center, a rooftop dog run, a speakeasy and other shared spaces. Apartment interiors are planned with stainless steel appliances, wood or engineered flooring, custom shelving, Terrazzo tile in bathrooms, walk-in showers and electronic latch access control.
The site sits less than a quarter mile from the Hoboken PATH station and just a few blocks from Hoboken Terminal, providing quick connections to Manhattan by PATH and commuter rail and ferry services. Typical PATH travel times from nearby Hoboken are about 11 minutes to the World Trade Center and about 16 minutes to 33rd Street. The project will also be walkable to Hoboken’s primary retail street, Washington Street.
PCCP provided the senior construction loan. BlueGate Partners handled the financing execution on behalf of Urby and Ironstate. Members of the BlueGate execution team named in the financing are Mark DeLillo, Marc Schulder, Lee Spiegelman, Felipe Marin, Eli Zaoutis and Jeremy Silber.
PCCP’s vice president for the transaction characterized the loan as an opportunity to finance a sizeable, Class A, transit-oriented multifamily property in Hoboken with a borrower who has a strong local track record, and noted the strength of Hoboken’s rental market and the contribution the project is expected to make to placemaking in southern Hoboken. The BlueGate team described the development as a project that will combine thoughtful design, high-quality finishes and modern amenities with strong connectivity to Manhattan.
Reports indicate construction will begin immediately and that the project has already “gone vertical” in the early phases. The development is expected to reach completion in early 2028, barring schedule changes.
The project arrives amid a local development environment described as having a bottlenecked pipeline: Hoboken has seen population gains over the past two decades but faces limited buildable land and lengthy approval and construction processes. Nearby activity includes a large, high-rise multi-hundred-unit project in a neighboring city that recently topped out and is slated to begin move-ins next year, underscoring regional demand for new housing even as supply remains constrained.
Multiple industry sources provided consistent details on the loan amount, project size, unit mix, amenities and timelines. The financing is described in filings and project notices as a senior construction loan for a 345-unit, Class A, transit-oriented multifamily development at 256 Observer Highway.
The project is financed with a $162 million senior construction loan provided by PCCP.
The loan was made to an affiliate of Ironstate Holdings; the development is being delivered in partnership with Urby.
The building will have 345 units total: 307 market-rate and 38 affordable. The breakdown is about 29 studios, 220 one-bedrooms, 61 two-bedrooms and 35 three-bedrooms.
The project is a 16-story building totaling approximately 418,332 square feet on a roughly 1.1-acre site.
There will be roughly 17,000–17,425 square feet of retail space, including a café, and a reported 152-space parking garage.
Amenities include a concierge, landscaped amenity deck with grills, fitness center, rooftop dog run, speakeasy and more. Unit finishes are expected to include stainless steel appliances, wood or engineered floors, custom shelving, Terrazzo tile bathrooms, walk-in showers and electronic access control.
The site is under a quarter mile from the Hoboken PATH station and a few blocks from Hoboken Terminal, with PATH times to Manhattan locations typically in the range of 11–16 minutes.
Construction has begun and the project is expected to be completed in early 2028, subject to normal construction risks and schedule changes.
| Feature | Details |
|---|---|
| Project name | Hoboken Urby |
| Address | 256 Observer Highway (Observer Highway & Park Avenue), Hoboken, N.J. |
| Loan amount | $162,000,000 (senior construction loan) |
| Lender | PCCP |
| Borrower | Affiliate of Ironstate Holdings |
| Financing execution | BlueGate Partners (execution team: Mark DeLillo, Marc Schulder, Lee Spiegelman, Felipe Marin, Eli Zaoutis, Jeremy Silber) |
| Size | 418,332 sq ft; ~1.1-acre site; 16 stories |
| Units | 345 total (307 market-rate, 38 affordable) |
| Unit mix | 29 studios (8%), 220 one-bed (64%), 61 two-bed (18%), 35 three-bed (10%) |
| Retail | ~17,000–17,425 sq ft (includes café) |
| Parking | Reported 152 spaces |
| Amenities | Café, speakeasy, concierge, landscaped deck with BBQ, fitness center, rooftop dog run, extensive common spaces |
| Transit | Under 0.25 mile to PATH; a few blocks to Hoboken Terminal; PATH ~11 min to WTC, ~16 min to 33rd St |
| Expected completion | Early 2028 |
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