Kushner Wagering Half a Billion on Monmouth Mall Redevelopment

Rendering of Monmouth Town Center, Eatontown, NJ

EATONTOWN, NJ— Kushner Cos. is planning a $500-million redevelopment of Monmouth Mall, which the firm described as the largest single private investment in Eatontown’s history. Kushner says the investment will transform the mall, originally built in the early 1960s, into Monmouth Town Center , a state-of-the-art retail, dining and entertainment destination with a revamped tenant mix, a hotel, a residential component and an outdoor plaza, along with biker- and pedestrian-friendly green spaces and streetscape. “The retail sector has fundamentally changed as a result of online shopping in the digital era, and traditional-style malls and suburban office parks are struggling across the country,” James Yolles , a Kushner spokesman, tells GlobeSt.com exclusively . “More than two dozen malls having closed since 2010 and roughly 60 others are on the brink, according to Green Street Advisors . Macy’s announced recently the closure of over 30 stores; Sears and K-Mart recently announced disappointing results for their fourth quarter, which will accelerate their process of selling numerous properties; and just last week Sports Authority announced that they may be seeking to file Chapter 11 bankruptcy proceedings.” Yolles says traditional malls need to evolve to remain competitive. “That’s especially important in Eatontown, where the mall is the single largest source of tax revenue,” he says. “This investment will ensure that the mall remains a vibrant revenue source and provides important relief for taxpaying homeowners long into the future. And, as the first traditional mall-to-town center redevelopment in New Jersey, we’re hopeful it can serve as a model across the state.” Kushner looked at similar Town Center style mall conversions around the country and says it’s confident its plans for the Monmouth Mall make economic sense. “We’ve looked extensively at similar projects across the country,” Yolles says. “By and large, they’ve not only been huge hits with the public, but they’ve also been a boon for local tax rolls. In particular, we looked at projects like Santana Row in San Jose, CA, Tysons Corner Center in Northern Virgina, and The Domain in Austin, TX, in addition to our own Pier Village in Long Branch.” The residential component of Monmouth Town Center will comprise one- and two-bedroom units – specifically intended to minimize impact on the local public school system and traffic. The project will also meet the State-mandated affordable housing requirement. “Traditional indoor malls were, by and large, built in a different era. Today, the millennial generation has different lifestyles and work preferences than baby boomers – and the evolution of malls reflects that,” says Yolles . “As we’ve seen around the country, the traditional enclosed mall paradigm has reached a tipping point. They can evolve and stay vibrant, or fall behind and risk losses in shoppers and sales. Fortunately, there’s a fresh model: the town center. More and more, Americans in areas with malls want to live close to the action: places with 24/7 options for retail, dining, nightlife and recreation. And that’s exactly what we’re planning to build here: the first such mall redevelopment in the state of New Jersey and what we hope will serve as a model for other municipalities looking to keep local malls thriving – both as great places for local residents but also as critical tax revenue sources.” Kushner is the sole owner of the mall after purchasing Vornado Realty Trust’s 50 percent interest last summer. “This landmark investment will transform Monmouth Mall into a 24/7 destination that truly offers something for everyone,” said Jared Kushner, CEO of Kushner Companies. “It’s no secret that traditional-style malls are struggling across the country, so we’re really focused on delivering a fresh, modern project that will meet the needs of area residents for years to come.” “Today is an exciting day for Eatontown,” says Eatontown Mayor Dennis Connelly . “This investment by Kushner Cos. has the potential to ensure that our largest source of tax revenue remains strong long into the future. At the same time, it will reinvigorate a suburban shopping hub at a level unmatched across the state, giving our residents something they can really be proud of. It’s truly a win-win.”