Kushner Secures $415M for Monmouth Mall Redevelopment: A Bold Vision for a New Community Hub
Sep 10, 2024 • 7 min read
Kushner Cos. has secured $415 million in construction financing to fund the highly anticipated redevelopment of Monmouth Mall in Eatontown, now rebranded as Monmouth Square. The financing package, backed by Fortress Investment Group and Rithm Capital Corp., will transform the outdated retail center into a modern, mixed-use, open-air town center. The new space will feature 990,000 square feet of retail and dining, a Whole Foods Market, a public green, pedestrian pathways, 1,000 residential units, and medical office space.
Strategically located off Route 35 and just a mile from Exit 105 of the Garden State Parkway, Monmouth Square aims to redefine the community’s experience with enhanced accessibility and amenities. Kushner broke ground on the project in May 2024, beginning with the demolition of 600,000 square feet of retail space—reducing the mall’s original footprint by 40%. Lord & Taylor, which closed in 2018, and JCPenney, which shuttered in 2022, are among the stores being demolished.
Whole Foods will take over the space currently occupied by Barnes & Noble, which will relocate to a new retail building within the town center. Other key retailers, including AMC, Macy’s, and Boscov’s, will remain open during construction.
The Financing Breakdown:
- $303 Million Residential Loan: The largest portion of the financing—$303 million—was secured from funds managed by affiliates of Fortress Investment Group to develop the residential component. This will include 1,000 apartment residences, 125 of which are designated for affordable housing. The residential area will also feature a 40,000-square-foot clubhouse offering luxury amenities such as a fitness center, coworking spaces, a spa, and recreational courts for pickleball and basketball.
- $112.5 Million Retail Loan: An additional $112.5 million was secured from Rithm Capital, managed by GreenBarn Investment Group, for the redevelopment of the retail spaces. The 990,000 square feet of retail will be anchored by a new Whole Foods Market, ensuring the retail component remains a strong draw for the community.
With 82% of the retail space already preleased to a diverse set of tenants, Monmouth Square is shaping up to be a premier destination. Architectural design for the project is being led by Minno + Wasko Architects and Planners, along with Benoy and the Dietz Partnership, merging modern aesthetics with functionality. Retail leasing is being handled by BOND Retail Partners, focusing on curating a dynamic tenant mix.
CEO Laurant Morali of Kushner emphasized the broader vision for the project: “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.”
Michael Sommer, Chief Development Officer of Kushner, noted the significance of this milestone: “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 toward reimagining this site in a way that meets the evolving needs of the community.”
Monmouth Square is set to become a model for future mall redevelopments across the country, blending living, shopping, and community interaction into a single vibrant destination.