Page 16 - RE-NJ

14 OCTOBER 2024
Rendering by Minno & Wasko Architects and Planners
KUSHNER LANDS $415 MILLION FINANCING
PACKAGE FOR MONMOUTH MALL PROJECT
K ushner has secured $415 million
in construction fi nancing for
its landmark plan to transform the
Monmouth Mall with a downsized,
open-air retail footprint and the ad-
dition of 1,000 apartments and new
commercial and community spaces.
The fi nancing, which comes with
demolition underway at the Eaton-
town site, includes a $303 million
loan for the project’s residential
component from funds managed
by affi liates of Fortress Investment
Group. The second transaction is
a $112.5 million loan from Rithm
Capital Corp. that will support the
redeveloped retail component,
where plans call for 990,000 square
feet anchored by a Whole Foods
Market.
The new Monmouth Square project
will rise on 100 acres at the junc-
tion of routes 35 and 36.
“We are thrilled to have obtained
the necessary fi nancing to move
forward with the redevelopment
of Monmouth Mall,” Kushner CEO
Laurent Morali said. “This import-
ant project represents a new era for
this property and the region, where
a thriving, multifaceted communi-
ty hub will rise from an outdated,
underused concept. Monmouth
Square will not only provide pre-
mier living and shopping experienc-
es but will also serve as a model for
future mall redevelopments across
the country.”
Kushner broke ground on the
project in early May, noting that it’s
currently razing 600,000 square feet
of retail space to reduce the mall’s
footprint by 40 percent. The fi rm
added that the project is already
Plans for Monmouth Square, Kushner Cos.’ redevelopment of the Monmouth
Mall property in Eatontown, call for the addition of new apartment buildings and
landscaped, walkable public space meant to draw retail customers and residents
from both the borough and neighboring towns.
JLL INKS $152
MILLION FINANCING
DEAL FOR JOURNAL
SQUARE PROJECT
N amdar Group has snagged $152
million in construction fi nancing
for a project that will bring nearly
600 new apartments to Jersey
City’s booming Journal Square
neighborhood.
According to JLL, which sourced
the debt, the package includes
senior fi nancing from Centennial
Bank and mezzanine fi nancing
from a private lender. Proceeds
will support the development of
35 Cottage St., a 27-story tower
that will include 588 luxury rentals
as well as a Chabad Synagogue, a
preschool and the fi rst dedicated
party hall in Journal Square.
“Namdar was an early mover in
the JSQ marketplace and has built
an institutional-quality portfolio
of highly effi cient multi-housing
units to meet the continued market
demand,” said JLL Managing
Director Thomas E. Didio Jr., who
arranged the loans alongside Senior
Analyst Michael Mataras. “JLL is
excited to partner the CCFG and
Namdar teams to bring to life the
next building in their portfolio.”
JLL represented Namdar, noting that
35 Cottage St. will be less than fi ve
minutes by foot from the Journal
Square PATH Station. It will also
be within a 30-minute ride of New
York Penn Station, The World Trade
82 percent preleased to tenants
across a range of industries, with
BOND Retail Partners spearheading
retail leasing while Minno & Wasko
Architects and Planners, Benoy and
the Dietz Partnership are leading
design for a destination that will
cater to both residents of the new
apartments and visitors.
The residential component will
include 125 units designated as
affordable housing, Kushner said,
plus a 40,000-square-foot clubhouse
with a fi tness center, a spa, a café,
coworking space, a media room
and other amenities. The balance
of the site will have the remaining
990,000 square feet of retail space,
an expansive public green, a net-
work of pedestrian pathways and
medical offi ce space.
“Redeveloping a property of this
scale and scope is a complex
endeavor, requiring a deep under-
standing of market dynamics along
with strong relationships with
fi nancial institutions,” said Michael
Sommer, Kushner’s chief develop-
ment offi cer. “Securing construc-
tion fi nancing represents a signifi -
cant milestone in our efforts. With
demolition of the former Lord &
Taylor department store underway
along with the construction of the
new Barnes & Noble location to
accommodate Whole Foods, we
are making substantial progress
toward reimagining this site in a
way that meets the evolving needs
of the community and creates a
vibrant hub where people can live,
shop and connect.”
GreenBarn Investment Group,
Rithm Capital’s operating partner,
will manage the $112.5 million loan.
“We are excited to participate in
the transformation of this premier
property into a thriving commu-
nity and retail center,” said David
Schonbraun, managing partner
for GreenBarn. “We look forward
to working with Kushner in sup-
porting the development of this
next-generation model for retail
redevelopment.”
Spencer Garfi eld, managing direc-
tor at Fortress Investment Group,
added: “We are pleased to work
with Kushner and GreenBarn
Investment Group on such an im-
portant project for the Eatontown,
NJ, community. Monmouth Square
provides a compelling opportunity
for us to have a positive impact
on the community for decades
to come while seeking to deliver
strong risk-adjusted returns for our
investors.”
Lord & Taylor, the fi rst department
store to be razed, closed its loca-
tion in 2018, while JCPenney, which
shuttered its space in 2022 as part
of the retailer’s shift to ecommerce,
will also be demolished, Kushner
said. Whole Foods is slated to move
into the space currently occupied
by Barnes & Noble, which will relo-
cate to a new retail building in the
town center.
The remaining retailers, including
AMC movie theater, Macy’s and
Boscov’s, will remain open during
construction.
Center and Newark Penn Station.
It will rise in a market that has a
low vacancy rate of 2.3 percent
despite increasing rents and supply,
JLL said.
“We are excited to have the
opportunity to work again with the
Centennial team on the development
front in Jersey City,” Andrew
Namdar of Namdar Group said.
Plans for 35 Cottage St. in Jersey City call for 588 luxury rentals, a Chabad
Synagogue, a preschool and the fi rst dedicated party hall in the city’s Journal
Square neighborhood.
Rendering courtesy: JLL