NJ JCPenney May Be Torn Down For New Apartments: Reports

EATONTOWN, NJ - Developers have proposed to knock down the JCPenney at Monmouth Mall, with intent to build new apartments on Route 35, according to multiple reports.

Mall owner Kushner Companies proposed 1,000 apartment units, dubbed “Monmouth Village,” with a clubhouse and open public space, as well as walking and biking trails and the relocation of the Barnes & Noble bookstore, according to reports from the Asbury Park Press and CentralJersey.com.

The plan would take around seven years to complete, Michael Sommer, EVP of development and construction at Kushner Companies, told centraljersey.com.

There are currently 11 JCPenney stores in New Jersey, with locations in Galloway, Mays Landing, Middle Township and Paramus having closed their doors in the last five years. The department store chain filed for Chapter 11 bankruptcy in 2020; it was bought for $1.75 billion by Simon Property Group and Brookfield Asset Management, Inc.

The Monmouth Mall is also facing dwindling patronage, as the site went from 90 percent business capacity in 2018 to just 62 percent in 2022, per Kushner Companies’ VP of asset management Isaac Buchler according to centraljersey.com. Buchler noted that the mall’s capacity is expected to dwindle even further with the departure of Planet Fitness.

“This is simply not sustainable,” Buchler said. “The cost to keep our doors open remains relatively the same whether we are 100% occupied or 20% occupied.”