New destination center rising in Jersey's hottest market.

Thanks to its proximity to Manhattan, comprehensive mass transportation options, and a population density greater than that of most major cities (and in excess of that of New York City), Hoboken, New Jersey has been established as one of hottest residential markets in the state and the jewel of its "Gold Coast."

With such a burgeoning population, one would expect the city to have urban retail corridors spread throughout the community to serve its residents and their considerable disposable income.

However, retail storefronts are instead almost exclusively situated on the Washington Street retail corridor--in spite of its distance from the majority of Hoboken's residents--limiting the value of residential units being constructed away from Washington Street. That is about to change as new areas of the "square mile" city are now being tapped by residential and retail developers alike.

For years, Hoboken's population growth was limited only by its existing housing stock and lack of developable sites. However, with the formation of several redevelopment zones and NJ Transit's installation of a light rail system, over 6,000 new residential units have been built in Hoboken over the last six years, allowing for an increase in population density to over 56,000 people per square mile and a total population within one mile to exceed 120,000 people. Another 6,000 residential units are currently in the pipeline. Hoboken's population has an average age of 32 and an average household income in excess of $135,000.

Northwest Hoboken is home to most of the city's new residential development and is realizing the vision of becoming a "family oriented" section of town complete with parks and activity space. Much of this is attributed to the development of Monroe Center, a 1.2 million square foot mixed-use development being touted as the next hot spot on the "Gold Coast."

The new community brings more than 40 retail stores to Hoboken while creating a vibrant urban-village with 200 artist and small business workspaces, 435 upper end residential condominiums/apartments, and 1,220 parking spaces within an arts-inspired, pedestrian friendly setting. Monroe Center is the brainchild of developers, Dil Hoda and Gerard Sadell who firmly believe that upscale, educated and wealthy city dwellers require retail convenience and charm. Committed to this theory, they incorporated retail and cultural components into their development as a way to create a sense of place and a more desirable lifestyle for residents

Monroe Center's 125,000 s/f of retail space will provide much needed services to this section of town whose residents might otherwise be forced to walk over 12 blocks to access a coffeehouse, a restaurant or a specialty shop.

With nearly 75% of the first phase leased to tenants including a theater, a collection of restaurants, several specialty stores, apparel boutiques, a day spa, and art galleries, the values of residences within the market have increased considerably. What's more, 95% of the 110,000 s/f of office space located within the existing Monroe Center for the Arts has been leased by 70 artists and 130 small businesses.

These retailers are attracted to the shear density and wealth of Hoboken as well as the prospect of being located in a new destination center representing the largest assembly of retail being constructed in the city. Many also see Monroe Center as a way to enter the Hoboken market at "off Washington St." rental rates. Monroe Center's location adjacent to the Hudson-Bergen Light Rail connects it with PATH trains, ferry service and New Jersey Transit trains throughout the state.

Monroe Center's "Smart Growth" design guarantees a much needed, vibrant, sustainable urban village with extra-wide tree-lined sidewalks, public parks, a spacious plaza with fountains, seating decks and a "hammock park." These combine with the community's existing and well-attended Center for the Arts to create a culturally-anchored, lively and diverse environment designed to encourage extended visits.

BY SETH KENSTENBAUM, DIRECTOR, MONROE CENTER DEVELOPMENT PRINCIPLE, ALTITUDE REALTY GROUP