Work will begin soon on demolition of the vacant JCPenney and Lord & Taylor stores at the Monmouth Mall as one of the state’s largest shopping destinations is rebranded as a pedestrian-friendly “live, work and play” development called “Monmouth Square.”
New York-based real estate developer Kushner Companies, the mall’s owner, confirmed demolition at the Eatontown property will start in March to make room for the construction of 1,000 new luxury apartments. The remaining retail outlets will undergo a “de-malling” that entails changing the enclosed space to an open-air configuration.
Michael Sommer, Kushner’s chief development officer, said the redevelopment is about “adapting with the times.”
“Needless to say, retail has changed and we don’t think it will ever go back to the way things were,” said Sommer. “So, we feel the best use is a true town center environment — that walkable type of environment where people can live, dine, and shop all on one property.”
Both JCPenney and Lord & Taylor were once anchors at the Monmouth Mall, but sales declined with the rise of online shopping and declines in mall traffic. Malls account for a shrinking proportion of total leasable brick-and-mortar retail space area in the U.S., according to analysis from Coresight Research.
“This contraction is driven by low-tier malls, which were closing before the pandemic and many of which continue to struggle today due to stiff competition from e-commerce and other shopping centers,” according to a June 2023 report. “Other retail formats, such as open-air shopping centers, have also drawn customers away from underperforming malls due to a similar retailer makeup.”
Along with the empty JCPenney and Lord & Taylor, there’s an entire stretch of the mall slated for demolition that is predominantly vacant today, in anticipation of that work commencing, said Sommer.
However, the rest of the mall will remain open throughout the redevelopment process, Sommer said.
The demolition of the JCPenney and Lord & Taylor stores will reduce the center’s current 1.5 million square feet space to about 900,000 square feet.
Kushner Companies aims to redevelop the regional mall as an open-air destination with a mix of stores, restaurants, 1,000 new luxury apartments, and 115,000 square feet of medical office space. Interior hallways will be replaced by outdoor walking paths, according to site plans.
“When the shopping center was originally built, ironically, it was constructed as an open air shopping center, similar to the arrangement we are bringing back now,” said Sommer. “It was only in its second life that the mall was enclosed.”
The firm announced in June it had signed a 40,000-square-foot lease to bring Whole Foods to the mall. The supermarket is set to occupy a space that currently houses Barnes & Noble. The book store will move to a different location at the mall.
Sommer said the existing Macys, AMC Theatres, and Boscov’s will remain in their current locations.
The redevelopment plan for the Monmouth Mall does include a tax deal, or payment-in-lieu-of-taxes agreement, which provides tax exemptions to the developer in lieu of payments directly to the town.
In August, the borough council approved a 30-year tax exemption for Kushner, according to meeting minutes.
“As the greatest tax ratable in town, we have an ongoing commitment to try to be great corporate citizens and neighbors,” said Sommer.
The old JCPenney has occupied 225,000 square feet of space at the Monmouth Mall since 1976.
The retailer filed for Chapter 11 bankruptcy in early 2020 before emerging later that year with new owners Simon Property Group and Brookfield Asset Management Inc.
JCPenney currently still operates 10 stores in New Jersey, according to its website.
Meanwhile, the Lord & Taylor at Monmouth Mall has been closed since 2018. It first opened back in 1990.
In 2020, Lord & Taylor announced plans to shutter all stores after nearly 200 years of business and pivot to strictly e-commerce sales.
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