Things may be shaken up at Monmouth Mall as redevelopment plans are said to be looming.
As a result, the Eatonton mall may soon see the closure of one of its main tenants.
The Kushner Companies, the mall’s owner, recently proposed razing the JCPenney store to replace it with apartments, according to centraljersey.com and The Asbury Park Press.
If approved, the store will be replaced by 1,000 apartments, as well as walking and cycling paths.
Michael Somer, executive vice president of development and construction at the Kushner Companies, told Centraljersey.com that the plan would take six to seven years.
Monmouth Mall went from 90% of commercial capacity in 2018 to 62% in 2022, according to Isaac Buchler, vice president of asset management at Kushner Companies.
“This is simply not sustainable,” Buchler told Centraljersey.com. “The cost of keeping our doors open remains relatively the same whether we are 100% occupied or 20% occupied.”
JCPenney has occupied 225,000 square feet in 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 operates 11 stores in New Jersey and 669 locations nationwide.
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