Urby and Panepinto Properties have taken an $88.3 million construction loan to develop Journal Square Urby, a 317-unit high-rise multifamily project in Jersey City, N.J.

AIG Asset Management provided the 10-year, non-recourse, construction-to-permanent loan, according to documents filed with Hudson County. JLL Capital Markets represented the borrowers to secure the fixed-rate financing.

The development site, located at 532 Summit Ave. in the Journal Square neighborhood, will have a mix of studio to three-bedroom apartments. The project was initially slated to include 340 units but was scaled back last summer, Jersey Digs reported. Even so, current plans call for 25 stories of residential space, a 3,000-square-foot café or bar, and a wide range of amenities including a fitness center, grilling stations, a rooftop lounge, and an outdoor swimming pool.

Return of the Commuters

The property, a stone's throw from multiple public transportation links connecting Jersey City with Manhattan, looks to benefit from returning commuters and high-income job growth in the market, according to a second-quarter outlook from Marcus & Millichap.

While vacancy in the market has seen a modest increase to 4.3% in the first quarter of 2022, rent growth is still expected to post record gains of 7.5% this year. Construction is underway across the market — not just in Jersey City — with deliveries of 16,000 units scheduled this year, a 5,000-unit increase compared to 2021.