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. — Rendering by Minno & Wasko Architects and Planners/Courtesy: Kushner
By Joshua Burd
Kushner has secured $415 million in construction financing for its landmark plan to transform the Monmouth Mall with a downsized, open-air retail footprint and the addition of 1,000 apartments and new commercial and community spaces.
The financing, which comes with demolition underway at the Eatontown site, includes a $303 million loan for the project’s residential component from funds managed by affiliates 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 junction of routes 35 and 36.
“We are thrilled to have obtained the necessary financing to move forward with the redevelopment of Monmouth Mall,” Kushner CEO Laurent Morali said. “This important project represents a new era for this property and the region, where a thriving, multifaceted community hub will rise from an outdated, underused concept. Monmouth Square will not only provide premier living and shopping experiences 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 firm added that the project is already 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 fitness 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 network of pedestrian pathways and medical office space.
“Redeveloping a property of this scale and scope is a complex endeavor, requiring a deep understanding of market dynamics along with strong relationships with financial institutions,” said Michael Sommer, Kushner’s chief development officer. “Securing construction financing represents a significant 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 towards 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 community and retail center,” said David Schonbraun, managing partner for GreenBarn. “We look forward to working with Kushner in supporting the development of this next-generation model for retail redevelopment.”
Spencer Garfield, managing director at Fortress Investment Group, added: “We are pleased to work with Kushner and GreenBarn Investment Group on such an important 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 first department store to be razed, closed its location 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 relocate 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.
