Plans for Hoboken Connect include a CetraRuddy-designed, 386-unit apartment building at 201 Observer Highway — across from the Bloomfield and Washington Street intersections — with 20 percent of the homes designated for lower-income renters. — Rendering courtesy: JLL
By Joshua Burd
LCOR has landed a $155 million construction loan for its planned 386-unit apartment tower just west of Hoboken Terminal, according to a debt placement team with JLL.
Known as Charlie, the 27-story building is slated to open in 2026 after breaking ground last month at 201 Observer Highway. It’s moving ahead with the new five-year floating-rate loan from insurance accounts managed by KKR, which JLL sourced on LCOR’s behalf, in a key piece of the long-awaited Hoboken Connect project by the developer and NJ Transit.
“This project is nearly 20 years in the making, which further underscores the value of new development next to one of the busiest train stations in the country,” said Jon Mikula, a senior managing director with JLL’s Morristown-based capital markets team.
Mikula arranged the financing alongside fellow JLL Senior Managing Director Jim Cadranell and Vice President Michael Lachs. In a news release, they noted that Charlie will have floorplans ranging from studios to three-bedroom units, with modern technology and amenities such as a fitness center and a large rooftop deck with a pool.
Additional amenities will include coworking spaces, a pet spa and a ground-floor park, JLL said. Plans also call for sustainability features such as green roofs, extensive stormwater improvements and a system consisting of 66 geothermal wells with a maximum depth of 850 feet and electric heat pumps.
Residents, meantime, will be steps from rail, bus and ferry service at Hoboken Terminal, which is also slated for a major update as part of the Hoboken Connect project. LCOR is also slated to build a new 21-story office building nearby, as well as 5,000 square feet of retail space.
“This is the type of large-scale complex development at which LCOR excels,” Cadranell said. “KKR recognized the unique opportunity and provided very competitive financing terms.”
LCOR breaks ground on 386-unit rental tower for sweeping ‘Hoboken Connect’ project