Blackstone Provides $515M Loan for Kushner Companies’ The Journal 

Deal volume typically slows down in the run-up to the July 4 holiday, but for Kushner Companies it’s business as usual. 

The firm just sealed a $515 million loan from Blackstone for The Journal, its luxury two-tower residential development in Jersey City, N.J.’s Journal Square submarket, Commercial Observer can first report.

The three-year loan — originated by Blackstone Real Estate Debt Strategies (BREDS) — includes two one-year extension options and will be used to complete The Journal’s construction and lease-up. It retires previous construction financing on the project from 2022, when AIG provided a $385 million senior loan and Related Credit Funds provided a $130 million mezzanine loan. 

“We thank our construction lenders, AIG and Related for their trust in us three years ago, and are excited to open this bright chapter with Blackstone,” Laurent Morali, CEO of Kushner Companies, said in a statement. “We feel blessed to be able to finance our greatest projects with people we call friends.” 

Located at 1 Journal Square, the property spans 2 million square feet and comprises 1,723 apartments across two 52-story glass towers, plus a retail podium housing 40,000 square feet that’s 100 percent leased to Target. Phase 1 — just refinanced by Blackstone — encompasses the 12-story retail podium, the development’s 966-unit north tower and 1,000 parking spaces. 

“We are pleased to support the completion of this high-quality multifamily property,” a spokesperson for BREDS told CO. “This transaction reflects Blackstone Real Estate Debt Strategies’ ability to deliver creative, large-scale financing solutions and provide certainty to borrowers amidst market volatility.”

Indeed, there’s plenty of market fireworks to contend with at the moment, and closing a half-a-billion-dollar loan in the midst of the volatility is certainly nothing to sneeze at. As if that weren’t enough to celebrate, the building is also off to the races in welcoming new residents. 

“The lease-up couldn’t have started stronger. and we look forward to welcoming our first residents this week,” Morali said. 

As such, Blackstone’s big loan is closing July 1, the day the building opens to residents. Further, The Journal’s leasing center opened less than three weeks ago on June 12, and already 300 leases have already been executed, making the north tower already more than 30 percent pre-leased. 

The Journal features views of the Hudson River and the Statue of Liberty. It’s adjacent to the PATH train, which can be in Manhattan in 20 minutes and which makes The Journal an ideal pick for commuting professionals as well as students. Its amenities include a fitness center, an indoor basketball court, indoor and outdoor pools, a plunge pool, a sauna, a bowling alley, a podcast studio and a yoga studio. 

The deal fits nicely into Blackstone’s theme of investing in irreplaceable properties in prime locations across the globe, with Journal Square also experiencing population, household income and job growth greater than the wider New York City metro area over the past five years.

“We believe in the long-term potential of Journal Square and are proud to be part of its continued evolution,” Nicole Kushner Meyer, president of Kushner Companies, said in a statement. “This project is about more than just building homes. It is about creating beautifully designed spaces that inspire connection, elevate daily life, and reflect the unique energy and spirit of the neighborhood.”  

Newmark’s Jordan Roeschlaub, Nick Scribani and John Caraviello negotiated the debt. 

“The process with Blackstone, orchestrated by Newmark, couldn’t have gone more smoothly,” Nick Maki, head of investment management at Kushner Companies, said. “We’re grateful for this great execution.” 

The Journal’s second phase is also firmly underway. In June 2024, Kushner Companies landed a $295 million loan from Apollo and RXR to fund its construction, with plans to complete the second phase by the end of this year. 

The Blackstone loan brings Kushner Companies’ financing closings to almost $1 billion in the first half of the year, including a $87.3 million loan for its 2000 Biscayne project in Miami that it closed last week with Corebridge Financial and a $115 million construction loan from Arbor Realty Trust for its new apartment development in nearby Surfside. Elsewhere in New Jersey, the company broke ground on its redevelopment of the Westminster Hotel in Livingston into 280 apartments, Real Estate New Jersey reported. 

(Disclosure: Joseph Meyer, chairman of Commercial Observer owner Observer Media, is married to Kushner principal Nicole Kushner Meyer.) 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com