Kushners fend off rival developers for NJ mall

Company bought non-performing loan on 1.5M sf Monmouth Mall

Tri-State /
May.May 27, 2021 10:08 AM
Charlie Kushner, Laurent Morali, Nicole Kushner with Monmouth Mall (Google Maps, Sasha Maslov, Getty)

Charlie Kushner, Laurent Morali, Nicole Kushner with Monmouth Mall (Google Maps, Sasha Maslov, Getty)

The Kushners have reached into their pockets to fend off rival developers eyeing a mall the firm owns in Monmouth, New Jersey.

Kushner Companies bought a $110 million defaulted loan covering its 1.5 million-square-foot Monmouth Mall at an auction attended by several big New Jersey developers. Those firms were angling to buy the loan as a way of taking control of the property, sources familiar with the sale told The Real Deal.

 

The developer owns the mall through a joint venture with Brookfield Property Partners. The venture defaulted on the Royal Bank of Canada loan at the start of the pandemic, leaving the partners vulnerable to a foreclosure on the property.

The Kushners bought the loan this week at a discount to its face value, sources said, and are now collapsing the debt into the joint venture in a move that frees up the debt burden.

Representatives for Kushner Companies and the Royal Bank of Canada declined to comment, and a spokesperson for Brookfield did not immediately respond to a request for comment.

The loan was marketed by CBRE in a process that drew interest from several developers who wanted to buy the debt and foreclose on the property. The Kushners ended up outbidding others in order to secure control of the mall.

The Monmouth property has been a long-term project for the company. It was approved for redevelopment in 2018 by the municipality of Eatontown, despite pushback from nearby homeowners. The Kushners’ plan is to build 700 apartments on the site, along with two medical buildings and an outdoor pavilion.





    Related Articles

    arrow_forward_ios
    Macerich CEO Thomas O'Hern (iStock)
    “Revenge buying” powers mall owner Macerich to crush estimates
    “Revenge buying” powers mall owner Macerich to crush estimates
    Upcoming issue: Surreal estate
    Upcoming issue: Surreal estate
    Upcoming issue: Surreal estate
    Clockwise from top left: Charles Cohen, Douglas Durst and 657 West 57th Street Avenue (Getty, Google Maps)
    Durst sues Landmark Theatres for $49M in damages, unpaid rent at UWS cinema
    Durst sues Landmark Theatres for $49M in damages, unpaid rent at UWS cinema
    MGM Growth Properties CEO James Stewart and Vici CEO Edward Pitoniak (MGM, Vici)
    Casino REIT Vici Properties acquires MGM Growth Properties in $17B deal
    Casino REIT Vici Properties acquires MGM Growth Properties in $17B deal
    Residence Inn Austin Northwest, TownePlace Suites Austin Northwest and Chatham Lodging Trust CEO Jeffrey Fisher (Marriott, Chatham Lodging Trust)
    Chatham Lodging Trust buys two Marriott-branded hotels in Austin for $71M
    Chatham Lodging Trust buys two Marriott-branded hotels in Austin for $71M
    essensys CEO Jeremy Bernard (iStock)
    Flex workspace tech firm essensys eyes US, APAC expansion
    Flex workspace tech firm essensys eyes US, APAC expansion
    27 Whitehall Street (Google Maps, iStock)
    Fidi landlord accused of permitting massage parlor prostitution
    Fidi landlord accused of permitting massage parlor prostitution
    Isaac Kassirer and his properties at 1187-97 Anderson Ave., 1220 Shakespeare Ave., and 1210 and 1230 Woodycrest Ave. (Google Maps)
    His portfolio decimated, Isaac Kassirer gets creative with rents
    His portfolio decimated, Isaac Kassirer gets creative with rents
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...