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.
PCCP provides $162 million loan as construction starts on Hoboken Urby
A $162 million senior construction loan has been provided to an affiliate of the developer behind the Hoboken Urby project, and work has begun on the ground-up building on a 1.1-acre site at the southern edge of Hoboken. The development will deliver a 345-unit, Class A, transit-oriented apartment building and related retail and parking.
What is happening now
Construction began in August 2025 and crews have mobilized at the site listed in public materials as either 256 Observer Highway or 265 Observer Highway. The borrower used the loan to finance the ground-up development of a project described as a 16-story mixed-use building totaling roughly 418,000–420,000 square feet. The lender expects the building to be completed in early 2028, while other project updates and earlier statements have cited a summer 2027 completion window. Those timeline differences reflect evolving schedules reported across multiple project updates.
Location and transit
The site sits at the corner of Observer Highway and Park Avenue, on Hoboken’s southern border and within a short walk of major transit options. Project materials note the site is less than a quarter mile from the local rapid-transit PATH station and is within easy walking distance of the city’s main retail street, Washington Street. Ferry, commuter rail and bus connections are also nearby, reflecting the project’s transit-oriented design goals.
Scale and uses
The building will include approximately 345 apartments split between 307 market-rate units and 38 affordable units. Unit types are planned as 29 studios (about 8%), 220 one-bedrooms (about 64%), 61 two-bedrooms (about 18%), and 35 three-bedrooms (about 10%). The project will offer roughly 17,000–17,425 square feet of ground-floor retail space, including a café, and a multi-level attached parking garage with room for 152 cars.
Building layout and amenities
The massing includes portions that rise to 16 stories and other sections that are nine stories. Inside and around the building, plans call for extensive amenities and open space designed to serve residents and the neighborhood. Listed amenities include a café, a speakeasy-style lounge, a 24/7 concierge, a landscaped amenity deck with BBQ grills, a fitness center, a rooftop dog run, and select apartments with private terraces. Apartments will be finished with stainless steel appliances, engineered wood floors, custom shelving, Terrazzo tile in bathrooms, walk-in showers, dimmable lighting, latch access control and keyless entry. Interior work for the homes is overseen by an in-house design team.
Landscaping, design and public realm
A fourth-floor courtyard designed by an internationally known landscape architect is part of the plan, with tall bamboo, planted terraces, a cold plunge pool, sunbeds, grill stations and a dramatic fire pit pavilion. Renderings show floor-to-ceiling windows framed by earth-toned panels, a two-story retail corner with pocketed terraces, and new tree-lined sidewalks with planter beds to improve the street edge.
Site background and local planning context
The property was formerly a municipal parking structure and had been part of local redevelopment planning for the southeastern corner of the city. Recent municipal plans guiding the area call for entertainment space, a 10% affordable housing set-aside target, pedestrian connections to major corridors, and incentives for workforce units. The Urby project is one of several developments advancing nearby, including a hotel project and a major terminal-area revitalization program that aims to add tracks, restore historic features, and reuse closed spaces for transit and community uses.
Financing and developer notes
The loan was provided to an affiliate of the development team and covers construction costs for the mixed-use building. Lending partners described the financing as supporting a sizable, transit-oriented multifamily property in a strong rental market. The development team characterizes the location as well connected and planned to integrate social and retail spaces with the apartments.
Timing and discrepancies
Public documents and project updates include slightly different details: two street addresses for the same property, retail area estimates that vary by a few hundred square feet, and completion windows ranging from summer 2027 to early 2028. These variations reflect reporting and schedule changes over time; the most recent construction notice cites an immediate start in August 2025.
FAQ
What is Hoboken Urby?
Hoboken Urby is a planned 16-story mixed-use apartment building with 345 units, street-level retail and an attached parking garage on a 1.1-acre site at the southern edge of Hoboken.
Who is financing the project?
A senior construction loan of $162 million was provided to an affiliate of the development team to fund construction.
When did construction start and when will it finish?
Construction began in August 2025. Completion dates reported vary from summer 2027 to early 2028; the most recent lender notice anticipates finishing in early 2028.
How many homes and what types are included?
The project includes 345 units: 29 studios, 220 one-bedrooms, 61 two-bedrooms, and 35 three-bedrooms. Thirty-eight units are designated as affordable housing.
What amenities will be available?
Amenities planned include a café, speakeasy lounge, 24/7 concierge, fitness center, landscaped decks, rooftop dog run, private terraces for select units and a fourth-floor courtyard with water and fire features.
How much retail and parking is planned?
Approximately 17,000–17,425 square feet of retail space is planned, including a café. An attached parking garage will provide roughly 152 spaces, with the first floor for retail parking and upper levels for resident parking.
Is the site near transit?
Yes. The site is within a short walk of the PATH station, ferries and regional trains and buses, making it highly transit-oriented.
Key project features
| Feature | Detail |
|---|---|
| Loan amount | $162,000,000 (senior construction loan) |
| Address | 256 / 265 Observer Highway (site described with both numbers in project materials) |
| Site area | 1.1 acres |
| Total units | 345 units (307 market-rate, 38 affordable) |
| Unit mix | 29 studios; 220 one-bed; 61 two-bed; 35 three-bed |
| Building size | Approximately 418,332–420,000 sq ft; 16 stories (with nine-story portions) |
| Retail | ~17,000–17,425 sq ft, including a café |
| Parking | Attached garage with ~152 spaces (first floor retail parking; upper floors for residents) |
| Start | Construction began August 2025 |
| Expected completion | Reported timelines vary: summer 2027 to early 2028 |
| Design & landscape | Architectural and landscape design elements include floor-to-ceiling windows, earth-toned paneling, pocketed terraces, and a fourth-floor courtyard with extensive planting |
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 NY News
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