News & Press Releases

With its apparent deep pockets and willingness to spend money, national retail developer Madison Marquette became the city’s waterfront hero last year for the company’s improvements to Paramount Theatre and Convention Hall, the boardwalk pavilions and the Ocean Avenue landscape.

Now, Gary Mottola, Madison Marquette’s president of investments, says his company reached a deal Dec. 31 to buy out Kushner Cos.’ unsold Wesley Grove condominium units and two other Kushner beachfront blocks awaiting development.

The acquisition, which must be approved by the city, had been expected in recent weeks. Mottola said that finalizing the agreement with Kushner New Year’s Eve was, “to some extent, tax driven” for Kushner.

Kushner’s Westminster Communities halted work on its Wesley Lake project last year after the parent company decided to pull out of several projects in New Jersey.

“We think we can accelerate the whole process there,” Mottola said. “Since Kushner Cos. did a business strategy of exiting New Jersey, they didn’t have the same level of excitement about Asbury Park as we have and which we can bring to this project.”

“We’re going to completely finish all the units, improve the overall look,” Mottola said. “The whole area will be cleaned up and beautified.”

Madison Marquette will take over the block of 91 units, of which 22 have been sold, Mottola said. The company plans to complete and sell out the remaining units and then develop residences and retail on an adjacent lakeside block and the triangle block across the street at Cookman and Asbury avenues.

The city was informed of the end-of-the year negotiations between Madison Marquette and Kushner but has not yet given the approval required whenever a new developer comes in or takes over an existing development site.

The city lost significant promised tax revenues when Westminster Communities halted work on the project last year. Mottola said his company’s concern is not to make up that loss in the deal with Kushner but to push forward to finish the units to move forward on the waterfront.

Sam Gershwin, president of Westminster Communities, could not be reached Friday.

News of the Kushner deal came a few weeks after Hoboken developer Metro Homes shut down its oceanfront Esperanza condominium site, citing a “national mortgage crisis” that had caused a setback for the company.

Mottola said Friday that his company is not looking at the Metro Homes site at this point, and that he believed Metro Homes is working to find a solution. Mottola said he plans to hold a press conference within 10 days to discuss his company’s overall plans.

Madison Marquette is in a joint venture with the city’s master developer, Asbury Partners, to develop all of the retail and entertainment space along Ocean Avenue.

Madison Marquette is on its own buying out Kushner. In the past, Mottola has said the company planned to spend $150 million to $200 million in the city. On Friday, he said the money for the Asbury Park project comes from a $500 million private equity fund and the company’s internal equity funds.