After eight years, Kushner starts $500M transformation of Monmouth Mall to Monmouth Square

EATONTOWN - Say goodbye to Monmouth Mall as you know it, and say hello to Monmouth Square, a modern, open-air town center that will replace the enclosed mall there now.

On Thursday, surrounded by its many partners and professionals, plus local elected leaders, officials from Kushner Cos, the owner and developer of the 103-acre property at the intersection of Routes 35 and 36, tossed the proverbial shovel of dirt to mark the start of construction, which will take four to five years to complete.

When they're done, the site will be drastically altered. Kushner will begin by demolishing 600,000 square feet of brick and mortar, shrinking the retail footprint by 40%. The first two buildings to be razed were the former homes of Lord & Taylor, which left the mall in 2018 and filed for bankruptcy, and J.C. Penney, which departed in 2022 following restructuring after it too had filed for bankruptcy, but was saved after being acquired by new owners.

The mall will retain 900,000-square feet of retail and restaurant space, and add 1,000 luxury apartments complete with a 40,000-square foot clubhouse and pool, a Whole Foods grocery, an expansive public green, a network of pedestrian pathways, 800 new trees and medical office space.

Eatontown news: Netflix spurs further redevelopment plans for Eatontown's downtown

During construction, Barnes & Noble, Macy's, AMC Theaters and Boscov's will remain open. All four major tenants are also part of the future of Monmouth Square.

The total investment is $500 million.

"Monmouth Square represents a transformative vision that will significantly enhance Eatontown and the surrounding area. We are committed to creating a destination that not only elevates the quality of life for residents but also positively contributes to the fabric, appeal and economic vitality of the entire community," said Nicole Kushner Meyer, the president of Kushner Cos.

Michael Sommer, Kushner's chief development officer, said brick and mortar is not dead, but "boring brick and mortar is" and in order to sustain it in the ever-changing retail marketplace, the redesign of the mall property is about "fostering a vibrant, sustainable environment that the enriches the experience for residents and visitors alike."

It was a long road to get to this point, not just in the history of the property, which was farm land prior to 1960, but in the many renditions of the plan, public debates and courtroom battles.

'I'm excited': Boscov's sets plans for future of the transformed Monmouth Mall

"The redevelopment of the mall brought intense emotions," Mayor Anthony Talerico Jr. said. "We can't deny the fact that the landscape is changing and we should change with it. The reduction of retail space, the increase in residential, the reversion back to an open-air market is radical, but I suspect it's no more radical than when these farmlands were converted to a shopping center."

Most of the land for what would be known as the Monmouth Shopping Center at Eatontown Traffic Circle was farmland owned by Albert E. Adams. Adams died in 1954 and left his 43-acre farm to his son Oliver, who sold it to a developer in 1956 for $200,000. The developer had also bought up the smaller plots surrounding the farm.

On March 1, 1960, the 600,000-square-foot open-air Monmouth Shopping Center opened and thousands of orange, blue and white balloons were launched to mark the occasion. Fifteen years later, the mall went through a major renovation. An additional 900,000 square feet of retail was added, and the mall was enclosed.

Kushner bought the mall in 2002 and shared ownership with several partners along the way before becoming sole owner in 2021.

Faced with competition generated by e-commerce, Kushner came to the borough in 2015 with an idea to transform the mall into a town center. In 2016, it presented its first plans to the public, which featured 700 apartments housed in seven-story buildings plus a futuristic-looking enclosed glass tower that would house restaurants.

That kicked off eight years of public scrutiny as a group of residents on the mall's border sued to try and stop the plan but lost, and Kushner and the borough litigated over property assessments and tax payments.

"It's safe to say that at times the mall's redevelopment was controversial," said Talerico.

Monmouth Mall memories: Bamberger's, Bun N' Burger and more live on in photos, stories

Last year Kushner's final plan was approved, which increased the number of apartments by 300 but moved all but one apartment building to the center of the property and reduced their heights to four stories.

Kushner and the borough settled their tax dispute with Kushner agreeing to pay in full the five years of taxes it was disputing — roughly $21 million worth — and the borough agreed to a 30-year tax exemption plan called a PILOT, or payment in lieu of taxes, where the borough will receive about $21 million over the next five years but once Monmouth Square is built out, Kushner will pay the town 7% of the revenue created by the apartments and 8% to 10% of the revenue created by the new retail configuration.

"Suffice it to say, this redevelopment project has been tricky. The best ones usually are, and I can tell everyone gathered here that we would not be here without a great working relationship with Eatontown's leadership," Sommer said.

When Jersey Shore native Dan Radel is not reporting the news, you can find him in a college classroom where he is a history professor. Reach him @danielradelapp; 732-643-4072; dradel@gannettnj.com.

This article originally appeared on Asbury Park Press: Monmouth Mall transformation into Monmouth Square begun by Kushner