By Linda Moss | CoStar News
Kushner Cos. is redeveloping the former site of a hotel and aged office building in North Jersey into a multifamily property, part of a pipeline of roughly 4,000 residential units the developer has underway as demand for housing soars.
The multi-generational family company, based in New York, is constructing Livana Livingston, a 280-unit rental project with two buildings, in affluent suburban Livingston. The project is slated for 550 and 570 W. Mount Pleasant Ave., where the Westminster Hotel and adjacent former Somerset Regal Bank building once stood, both owned by Kushner. They have been demolished to make way for the new apartment complex.
“The Westminster Hotel was on what I’ll refer to as our watch list for quite some time,” Michael Sommer, Kushner’s chief development officer, said. “Regional hotels have had their challenges, and the pandemic only further exacerbated the underlying issues. This property included an outdated suburban office building, which as we all know has its challenges too.”
“It was clear that the highest and best use for the properties was no longer hotel and office, and that multifamily was the answer.”
Sommer was one of the Kushner executives who spoke at Thursday’s groundbreaking for Livana Livingston, which is designed to have 56 affordable housing units integrated across both its buildings. The project on Mount Pleasant Avenue, also known as Route 10 near the development’s site, is expected to be completed in 2027.
Antiquated office buildings in New Jersey, such as the Somerset Bank site, and others across the country, are being razed as companies downsize their footprints and become pickier about their workplaces. Some one-time office parks are being redeveloped as industrial properties. But there is also a demand for housing nationally and in the Garden State, where there is a particular shortage of new, high-quality housing stock.
“From a multifamily perspective, in particular, there is a supply-demand imbalance in high-end towns in New Jersey,” Sommer told CoStar News. “Livingston is near the top of the list, and we feel really optimistic about the viability of new multifamily units.”
Apartment pipeline
Kushner has also transformed other former office sites in New Jersey into apartment complexes, namely Livana Fair Lawn and Livana East Hanover.
The company’s portfolio includes residential, commercial, retail and hospitality properties. It currently has a number of multifamily projects active not only in the Garden State but also in South Florida. Last month, Kushner broke ground on a 68-unit high-end apartment building at 9300 Collins Ave. in Surfside, Florida. It also has projects underway in Miami and Fort Lauderdale.
In addition to Livana Livingston, in New Jersey, Kushner is currently developing 360 multifamily units in Colts Neck, redeveloping the Monmouth Mall in Eatontown into a new town center with 1,000 residential units, and revitalizing the Lower Broadway corridor in Long Branch with a 299-unit residential project.
Kushner is also actively leasing at The Journal in Jersey City, a nearly $1 billion, 1,723-unit mixed-use development located in one of the region’s major transit hubs.
One of Livana Livingston’s buildings is slated for those 55 and older, while the other is for all ages. The 55-plus property will feature a fitness center, private men’s and women’s saunas and steam rooms, and a coworking mezzanine. Social and recreational spaces will include a clubroom with lounge seating and card tables, a private dining room, a game room with billiards and a golf simulator, and a rooftop terrace with grilling stations, firepits and outdoor games. Additional amenities include dedicated pickleball courts, a pet spa and a community garden lawn.
“In one building, we’re creating a sanctuary for adults aged 55-and-older, a setting that celebrates wellness, independence, and social connection,” said Nicole Kushner Meyer, Kushner’s president.
The neighboring building will also have a fitness center, a party room with multiple lounge areas and fireplaces, a card and poker room, and a speakeasy lounge and movie room. For younger residents, there’s a kids’ playroom and a teen arcade lounge, while outdoor offerings include a rooftop deck with grilling stations, firepits and a pool. There’s also a coworking mezzanine and pet spa.
Livingston roots
At the event, several speakers noted that Kushner Co.’s founder, Charles Kushner, wasn’t present because of his new role as U.S. ambassador to France. Charles is the father of both Nicole and Jared Kushner, who is President Donald Trump’s son-in-law. Jared is a former White House senior adviser to Trump and a former Kushner Cos. executive.
The Kushner family has deep roots in the township of Livingston, according to Meyer.
“I grew up just down the road, and Route 10 was part of our family’s rhythm,” she said. “Whether we were heading to the movies, picking up crafts for school projects at Michaels, shopping atKids R Us, or grabbing dinner after a long weekend at Primavera, this stretch of town was truly our backyard, familiar, comforting, and full of memories.”
Kushner will soon close on an over $500 million loan to take out the construction financing for its Jersey City project and will be getting a temporary certificate of occupancy for close to 900 units, according to Laurent Morali, the company’s CEO.
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