An effort to modernize an underutilized mall into a mixed-use complex with residences, retail, and open space has nabbed a massive loan to fund construction that is already underway.
Kushner announced that it has secured $415 million in financing through Fortress Investment Group and Rithm Capital Corp toward the redevelopment of the Monmouth Mall in Eatontown. The project will sport 990,000 square feet of retail and restaurant space, an expansive public green, a network of pedestrian pathways, 1,000 residential units, and medical offices.
Located at 180 Route 35, Monmouth Square is designed by Minno + Wasko Architects and Planners along with retail architects from Benoy and the Dietz Partnership. A portion of the 1,000 residences will fall under Kushner’s newly launched Livana brand.
“We are thrilled to have obtained the necessary financing to move forward with the redevelopment of Monmouth Mall,” said Laurant Morali, CEO of Kushner. “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represents a new era for this property and the region, where a thriving, multifaceted community hub will rise from an outdated, underused concept.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 Monmouth Square in May earlier this year. A Whole Foods Market is slated to move into space currently occupied by Barnes & Noble, which will be relocated to a new retail building in the town center upon completion of the project.
The financing package comprises two loans, the first being a $303 million residential pact from funds managed by affiliates of Fortress Investment Group. That portion will go towards the 1,000 apartments, 125 of which will be designated as affordable housing.
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.
The remaining $112.5 million retail loan comes from Rithm Capital, which will be managed by its operating partner GreenBarn Investment Group. Kushner says the project is already 82% pre-leased “to a diverse set of highly desirable tenants across a range of industries.”
The retail leasing strategy is being managed by BOND Retail Partners, ensuring a diverse and compelling mix of tenants. The new businesses will join an AMC movie theater, Macy’s, and Boscov’s at the property that will remain open during the development’s construction.
