The first day of July is a big one for Kushner Companies. Not only is it opening The Journal to residents, but it has also locked in a loan of more than half a billion dollars.
Blackstone Real Estate Debt Strategies provided a $515 million loan for Kushner Companies’ One Journal Square in Jersey City, the Commercial Observer reported. The luxury residential development in Jersey City’s Journal Square neighborhood also recently secured federal approval for EB-5 visa funding.
The three-year facility includes two one-year extension options and refinances previous construction debt from AIG ($385 million senior loan) and Related Credit Funds ($130 million mezzanine loan) originated in 2022. The loan will fund the completion of construction and lease-up of the project.
The development spans 2 million square feet across two 52-story towers, containing 1,723 units. Phase 1, covered by the Blackstone financing, includes 966 units in the north tower, a 12-story retail podium and 1,000 parking spaces; the 40,000-square-foot retail component is fully leased to Target.
The project launched leasing on June 12 and has secured 300 leases, achieving over 30 percent pre-leasing for the north tower. The building opens to residents on July 1.
Newmark’s Jordan Roeschlaub, Nick Scribani and John Caraviello arranged the debt financing.
The nearly $1 billion project has employed diverse funding sources. U.S. Citizenship and Immigration Services recently approved the first EB-5 petition using a new loan-based investment model, allowing foreign investors to contribute as little as $500,000 upfront. Kushner CEO Laurent Morali described the EB-5 capital as “a very, very small piece of our capital stack.”
Kushner also secured a $295 million loan from Apollo and RXR for Phase 2, which targets completion by year-end.
The Blackstone deal marks the latest significant financing activity for Kushner this year. Combined with recent closings, including an $87.3 million loan from Corebridge Financial for its 2000 Biscayne project in Miami and a $115 million Arbor Realty Trust construction loan for a Surfside development, the company has secured nearly $1 billion in financing in the first half of the year.
The Journal Square project has faced challenges, including WeWork’s departure as anchor tenant and recent stop-work orders issued to three contractors over wage violations, though Kushner maintains the contractors had no connection to the company.
— Holden Walter-Warner
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