Kushner Companies has received two loans totaling $415 million to pay for a redevelopment of the Monmouth Mall in Eatontown, NJ that will include new retail space and residential units.
The first funding of $303 million, managed by affiliates of Fortress Investment Group, will support 1,000 apartments. Of those, 125 will receive affordable housing designation.
The second part of the project will provide 990,000 square feet of retail space, headlined by a Whole Foods Market, which will take the place of the area Barnes & Noble is currently occupying. This portion will be supported by a $112.5 million retail loan from Rithm Capital, and its affiliate, GreenBarn Investment Group, will manage the debt.
According to Kushner, the architectural design of the project aims to couple “modern aesthetics with functional urban planning,” to appeal to the community.
“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 real estate developer said in a statement.
The redevelopment construction first began on May 9. The plan is to demolish 600,000 square feet, cutting retail space at the Monmouth Mall by 40 percent. The JCPenney and Lord & Taylor stores, which shuttered for good in recent years, are among the brands that have or will be demolished. Meanwhile, others including AMC, Macy’s, and Boscov’s will keep their doors open during the construction period.
“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represents a new era for this property and the region, where a thriving, multifaceted community hub will rise from an outdated, underused concept,” Laurant Morali, CEO of Kushner, said.
“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 said that the project is 82 percent preleased to tenants.
The move by the New York City-based company comes after it secured a four-year extension to an existing $480 million loan for a 750,000-square-foot Dumbo Heights mixed-use campus in Brooklyn.
It’s also been busy selling properties. Earlier this year, Kushner sold a 79-unit mixed-use portfolio in East Village for $41.5 million. And in December, the firm received $57 million for another six-building portfolio in the same neighborhood.