Kushner Snags $415M In Loans To Redevelop New Jersey Mall

Kushner Cos. has picked up two loans totaling $415M to demolish part of Monmouth Mall in Eatontown, New Jersey, and redevelop it into a mixed-use hub.

Wikimedia Commons pull on https://commons.wikimedia.org/wiki/File:Monmouth_Mall_Eatontown,_NJ_July_2019_-_48595321971.jpg
Monmouth Mall In 2019

The New York-based firm began work May 9 on a project to remake the aging mall into Monmouth Square under its new apartment brand, Livana, a combination of “live” and “nirvana,” GlobeSt reported.

Located an hour north of Philadelphia, Monmouth Square will include retail and 1,000 apartment units, 125 of which are set aside for affordable housing.

Fortress Investment Group affiliates are managing the first funding of $303M to support apartment development. Rithm Capital and affiliate GreenBarn Investment Group provided a $112.5M retail loan to add 990K SF of retail space, including Whole Foods Market as anchor tenant, according to GlobeSt.

“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represents a new era for this property and the region, where a thriving, multifaceted community hub will rise from an outdated, underused concept,” Kushner Cos. CEO Laurent Morali said in a statement.

The developer will demolish 600K SF, reducing retail by 40% at the mall. The shells of former JCPenney and Lord & Taylor stores will be reduced to rubble, and the Whole Foods will replace a Barnes & Noble location. Other tenants, including AMC Theatres, a Boscov’s department store and Macy’s, will remain open during construction.

Kushner Cos. told GlobeSt the project is 82% preleased.

“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,” a statement from the developer says.

Kushner Cos. is building an apartment-synagogue development in South Florida, among other projects. It secured a four-year extension on a loan in Brooklyn in May and completed the $41M sale of an East Village mixed-use portfolio a month earlier.

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