Real estate developer Kushner Cos. on Tuesday said it secured $415 million in construction financing through Fortress Investment Group and Rithm Capital Corp. to fund the highly anticipated redevelopment of the Monmouth Mall in Eatontown.
Monmouth Square, as the redevelopment will be known, is set to become a vibrant community destination off Route 35, less than one mile from Exit 105 of the Garden State Parkway.
The project, set to redefine the area, will transform the underutilized space into a modern, open-air town center featuring 990,000 square feet of retail and restaurant space, including a Whole Foods Market, an expansive public green, a network of pedestrian pathways, 1,000 residential units and medical office space.
Kushner broke ground on Monmouth Square on May 9, with initial work currently underway to demolish approximately 600,000 square feet of retail space, reducing the retail footprint by 40%. 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 an online marketplace, also will be demolished.
Whole Foods Market is slated to move into the space currently occupied by Barnes & Noble, which will be relocated 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.
The financing package comprises two key loans:
- $303 million residential loan from funds managed by affiliates of Fortress Investment Group: Kushner secured $303 million for the residential component of the project, which will include 1,000 apartment residences, 125 of which will be designated as affordable housing. The financing was provided by funds managed by affiliates of Fortress Investment Group. The residential development will also feature a 40,000-square-foot clubhouse, complete with a fitness center, spa, café, coworking space, media room, library, pickleball and basketball courts, golf simulator, children’s room and pet spa.
- $112.5 million retail loan from Rithm Capital, which will be managed by its operating partner, GreenBarn Investment Group: Kushner secured an additional $112.5 million for the redevelopment of the retail component of the project, which will include 990,000 square feet of retail space, anchored by a Whole Foods Market.
The thoughtfully designed blend of retail, dining and luxury apartments aims to create an open and easily accessible environment for residents and visitors alike. The project is already 82% preleased to a diverse set of highly desirable tenants across a range of industries. Architectural design for the project is being led by Minno + Wasko Architects and Planners, Benoy and the Dietz Partnership, combining modern aesthetics with functional urban planning to meet the needs of today’s market. The retail leasing strategy is being managed by BOND Retail Partners, ensuring a diverse and compelling mix of tenants.
“We are thrilled to have obtained the necessary financing to move forward with the redevelopment of Monmouth Mall. 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,” Laurant Morali, CEO of Kushner, said.
“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. 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,” Michael Sommer, chief development officer for Kushner, stated.
