Kushner, a renowned real estate developer and operator, announced that it has secured $415 million in construction financing through Fortress Investment Group and Rithm Capital Corp (NYSE: RITM) to fund the highly anticipated redevelopment of the Monmouth Mall in Eatontown, New Jersey. Monmouth Square, as the redevelopment will be known, is set to include 1,000 apartment residences.
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 Monmouth Square, 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, co-working 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 Monmouth Square, which will include 990,000 square feet of retail space, anchored by a Whole Foods Market.
Monmouth Square is set to become a vibrant community destination off Route 35, less than one mile from Exit 105 of the Garden State Parkway. 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.
Laurant Morali, CEO of Kushner, said, “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represents a new era for this property and the region, where a thriving, multifaceted community hub will rise from an outdated, underused concept.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.”
Michael Sommer, Chief Development Officer for Kushner, stated, “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.”
David Schonbraun, Managing Partner for GreenBarn, stated, “We are excited to participate in the transformation of this premier property into a thriving community and retail center. We look forward to working with Kushner in supporting the development of this next-generation model for retail redevelopment.”
Spencer Garfield, Managing Director at Fortress Investment Group, added, “We are pleased to work with Kushner and GreenBarn Investment Group on such an important project for the Eatontown, NJ, community. Monmonth Square provides a compelling opportunity for us to have a positive impact on the community for decades to come while seeking to deliver strong risk-adjusted returns for our investors.”
Kushner broke ground on Monmouth Square on May 9th, 2024, 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, will also 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.
Kushner is a multi-generational real estate development and management firm headquartered in New York City. The company’s diverse portfolio encompasses residential, commercial, retail, and hospitality, with approximately 10,000 apartments under development and more than 27,000 apartments under ownership across 14 states. Kushner’s integrated team oversees every step of the development and management process at its properties, creating an unparalleled and seamless experience for its tenants, team members, and partners.
Rithm Capital (NYSE: RITM) is a global asset manager focused on real estate, credit and financial services. Rithm makes direct investments and operates several wholly-owned operating businesses and seeks to generate attractive risk-adjusted returns across market cycles and interest rate environments. Since inception in 2013, Rithm has delivered approximately $5.4 billion in dividends to shareholders. Rithm is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.
GreenBarn Investment Group, an affiliate of Rithm Capital, is a vertically-integrated investment management firm that utilizes its extensive network and industry experience to acquire and develop real estate assets, make and invest in real estate loans, and invest in CRE credit special situations.
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $49.0 billion of assets under management as of March 31, 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
