The largest residential project currently under construction in Hoboken has obtained a large chunk of change to pay for the buildout of the complex, which sports a significant affordable housing component.
JLL Capital Markets announced that it has secured $155 million in construction financing for Charlie, a 386-unit multifamily development along Observer Highway. JLL represented the borrower, LCOR, in arranging the five-year floating-rate loan from insurance accounts managed by KKR.
Charlie, which broke ground last month, sits next to the historic Hoboken Terminal, which provides exceptional access to multimodal transportation options such as NJ Transit buses, rail, light rail, NY Waterway ferry and PATH services.
The tower is slated to rise 27 stories and be completed in 2026. Charlie includes 386 units with an average size of 698 square feet, offering studios, junior one-, one-, two- and three-bedroom options, with 20% of the units beside set aside as affordable housing.
Units at the complex will feature SmartRent controls for heating, cooling and electric functions, along with top-tier amenities like a concierge service, fitness center and large rooftop deck with a pool. Additional amenities include co-working spaces, a pet spa and a ground-floor park.
Sustainability is a key component of the design of the residential building, which will include green roofs and extensive stormwater improvements. Charlie will additionally be home to the largest geothermal system in New Jersey set to consist of 66 geothermal wells with a maximum depth of 850 feet and electric heat pumps.
The community is benefiting from significant local and state incentives that include a 30-year Payment In Lieu of Taxes (PILOT) from the City of Hoboken and $90 million of Aspire Tax Credits from the New Jersey Economic Development Authority.
JLL Capital Market’s Debt Advisory team representing the borrower was led by Senior Managing Directors Jon Mikula and Jim Cadranell and Vice President Michael Lachs.
Charlie is one component of the larger Hoboken Connect endeavor that will also see a 21-story, 704,355-square-foot office tower rise just to the east of the residential tower. The total project also includes a long-envisioned renovation of Hoboken Terminal and the neighboring Warrington Plaza to create amenities like an outdoor market space plus the restoration of the terminal’s second floor.
“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 Mikula.
