The Real Deal New York

Murray Kushner’s KRE snags $258M loan for phase II of massive Jersey City project

The second phase at Journal Squared is slated to open in 2021
By Meenal Vamburkar | January 25, 2019 09:00AM

Murray and Jonathan Kushner with Journal Squared (Credit: CityRealty and Hollwich Kushner)

The KRE Group has landed funding for the second phase of its massive Jersey City rental development.

The firm secured $258 million in construction financing, KRE said in a state ment Friday. Wells Fargo and Capital One provided the loan.

The funding will be used for Tower Two at Journal Squared, a mixed-use project comprised of three buildings with 1,840 rental units in total. Tower Two will stand 71 stories tall, with 704 residences, and is slated to open in 2021.

“The closing of this loan signifies another important milestone for the Journal Squared development,” Jonathan Kushner, president of KRE Group, said in the statement. “Construction of the second tower is already well underway and we look forward to bringing it to completion.”

Tower One of the project was completed in 2017. The 53-story building has 538 units — and was fully leased within 10 months of its launch, according to the company. A joint venture with KRE and National Real Estate Advisors closed on permanent financing for the first phase of the project last year. The $210 million loan was provided by AIG and brokered by Meridian Capital. The project also includes 36,000 square feet of retail and restaurant space and a pedestrian Plaza dubbed Magnolia landing.

KRE was the first major developer to commit to Jersey City’s Journal Square neighborhood. Owned by Charles Kushner’s rival brother Murray, the company received $40 million in tax breaks and subsidized loans for the development in 2013.

Journal Squared is among five residential projects KRE has in Jersey City. Grove Pointe and 18 Park are luxury rental buildings in Downtown Jersey City. KRE has 9,000 existing apartment units with another 7,000 units in various stages of approval and construction.