Kushner celebrated the start to work May 9 to turn Monmouth Mall inside out, transforming it into a vibrant town center in Eatontown.

Located at 180 Route 35, less than 1 mile from Exit 105 of the Garden State Parkway, shovels hit the dirt in front of the empty JCPenney at the 1.5 million-square-foot shopping mall.

The more than $500 million redevelopment project is actually a return of sorts to the property’s roots. The emerging campus will include 900,000 square feet of retail and restaurant space, 1,000 housing units, medical office space, a public green, a Whole Foods Markets store and more.

Kushner Chief Development Officer Michael Sommer began his remarks at the ceremony with a look back. The site originally opened, he explained, as Monmouth Shopping Center on March 1, 1960 — a 600,000-square-foot open air shopping center.

“What’s old is apparently new again,” he said.

‘Boring retail is dead’

The mall was enclosed in 1975, according to Sommer. Kushner got involved in 2002, purchasing the property in partnership with Vornado Realty Trust. Following successive partnerships, the company purchased the outstanding debt on Monmouth Mall in 2021 to become sole owner.

JCPenney shuttered at the mall in 2022. That store, along with Lord & Taylor, will be demolished as part of the transformation. The work will cut the amount of on-site retail space by 40%, down from 1.5 million square feet. Beyond removing walls, it will also bring new options to replace the ailing artifact.

“So, let’s be crystal clear here,” Sommer asserted. “Brick and mortar retail is not dead. Boring retail is dead. And therefore our business plan contemplates a full de-malling of the existing space – essentially turning the common areas of the buildings inside out and bringing the property back to its original open air configuration.”

He said the work will involve the adaptive reuse of several buildings along with brand new, ground up construction for remaining spaces.

During construction, businesses staying at Monmouth Square – AMC Theatres, Macy’s and Boscov’s – will remain open. Barnes & Noble will relocate to a new building at the town center. The commercial component is further diversified with restaurant and medical office space.

The tenant moving into the Barnes & Noble space holds particular significance.

“The Whole Foods deal was the official validation of our vision for this project,” Sommer said in his remarks, thanking the team from Amazon’s supermarket chain.

Crafting a campus

According to Eatontown Mayor Anthony Talerico Jr., 800 trees will be planted as part of Monmouth Square along with “miles of sidewalk poured” and bike lanes established.

“This will be a campus,” Talerico said. “It’ll undergo a major and positive transformation. And while some have mixed emotions, I assure you that in many ways there’s a sense of excitement.”

According to the township, the project will create approximately 350 construction jobs as well as 300 new, permanent jobs.

Additionally, 12.5% – or approximately 125 units – will be restricted for very low-, low- and moderate-income households.

During the groundbreaking ceremony, officials also said that efforts were underway to ensure Eatontown residents received residential priority.

The borough will issue multiple tranches of bonds to finance a portion of the project costs up to $3 million. Last year, the town council approved a 30-year payment in lieu of taxes agreement for the project.

“As the largest tax ratable in the borough, we have always understood the profound responsibility that comes along with that,” Sommer said at the groundbreaking. “And we always knew that this redevelopment would be in the best interest of our organization, the local community and the borough as a whole. In spite of the many challenges along the way, we found a path to get the project on track by working hand-in-hand with borough officials.”

Monmouth momentum

Taking the podium, Kushner CEO Laurent Morali offered perspective for Kushner’s larger efforts in Monmouth County. According to him, the company will start construction on 1,700 units of housing in the region this year. That work began in Long Branch last month.

Monmouth Square alone will add 1,000 units. The remainder will begin work in the coming weeks in Colts Neck.

Across the state, Morali said Kushner will get started on 4,000 apartments in 2024. 

“Just in New Jersey, it’s close to a billion dollars worth of construction financing that are happening for us in the first half of the year,” Morali said. “So, as you can tell, New Jersey means a lot to us and the stakes are big.”

Elected officials joined representatives from Kushner along with other project partners and stakeholders for the occasion. In addition to Talerico, state Sen. Vin Gopal, D-11th District, also delivered remarks. He also spoke to the larger play Kushner is making in the region.

“Your commitment to Monmouth County, not just here – Long Branch, everything that Kushner Cos. is doing in the county – it’s really incredible,” Gopal said. “I’m excited it’s going to play such a good role on our economic development and continue to be.”

Living space

The residential mix at Monmouth Square will feature Kushner’s latest apartment brand, Livana. During the ceremony, Kushner President Nicole Kushner Meyer said Restoration Hardware will design amenity spaces.

Introduced in April, the banner will encompass the majority of the company’s new construction projects in the Garden State, Kushner said at the time. The name is derived from “live” and “nirvana.” Kushner characterized it as a sophisticated rental option for an aspirational lifestyle. Encompassing 572 units, the first two Livana properties (Fair Lawn and East Hanover) are expected to open this spring.

Additional Livana locations across various stages include Long Branch, Colts Neck and Livingston.

Livana Monmouth Square will feature one-, two- and three-bedroom apartments; amenities; and social spaces. The 40,000-square-foot clubhouse will include a fitness center, spa and wellness space, juice bar and café, coworking lounge, media room, library, pickleball court, half basketball court, golf simulator, children’s room, pet spa and a TULU room.

“Monmouth Mall holds a special place in our hearts, folding into the fabric of each of our lives with cherished memories,” Kushner said at the event, sharing her own examples of family gatherings on Thanksgiving eve at AMC, buying her son’s first shoes and getting both her daughters’ ears pierced at Claire’s.

“These memories are not about the experiences within those models, but they represent the essence of community, family and shared joy,” she said. “And now, as we embark on this new journey, we envision Monmouth Square not just as a mere development, but as a vibrant town center; a bustling hub, pulsating with life, energy and endless possibility.”

Construction will start in the coming weeks. The Whole Foods is set to open in 2026, Sommer said.

“There will be multifamily units constructed along the way, and they’ll certainly be retail pad buildings constructed which we will open up sooner, because there aren’t other constraints … holding them back from proceeding at this current time,” he told NJBIZ.

With work ready to begin, optimism hung in the air outside the stark shopping center.

“We can’t deny the fact that the landscape is changing and we should change with it,” Talerico said. “The reduction of retail space, the increase in residential and the reversions to an open air market is radical, and I get it, but I suspect it’s no more radical than when these farmlands were converted to a shopping center. Things change. And in order for Eatontown to change with the times and remain economically vibrant … you must change with it.”

Editor’s note: This story was updated at 3:30 p.m. ET on May 10, 2024, to correct a reference of Born Realty Trust to Vornado Realty Trust and clarify remarks. Additionally, Whole Foods Market will open in 2026, not 2028.