New Jersey City Wants to Use Prime Site to Convert 1940s Sears Building to Luxury Apartments
A New Jersey city wants to replace a historic 1940s art deco building that was formerly a Sears Roebuck and Co. store. be a mixed-use project with up to 325 apartments, retail space, and more.
However, the move is being challenged in court by property owners who say the city is unfairly using zoning to take undamaged land.
“There are many cases where the government legitimately uses its power to seize private property,” said the lawyer. Ben Michael of Michael & Associates in Dallas tells Realtor.com®. “They take property from the owners, even if the owners don’t want to give it up. But, there are legal requirements here—the government can’t just take your property for any reason.”
Michael says that some of the valid reasons that can allow dumping include unsafe or property that is needed for a public project such as building infrastructure or sometimes economic development.
“In the end, reason must allow government action to benefit the public in some way,” he explained.
The former Sears building, which opened in 1932, is located in Hackensack’s Main Street Rehabilitation Area and was included in a redevelopment plan approved by the City Council last year.
Sears declared bankruptcy in 2019, and the Hackensack store at 440-468 Main Street closed in 2020.
The city’s master plan reports said: “Used housing that overlooks the Hackensack River in the middle of the city may be marketable and may provide an alternative market for goods and services in the downtown corridor.”
According to the redevelopment plan, the historic facade of the building and its 105-meter tower will be preserved.
Case details
The owners of the Sears building filed a complaint on Nov. 26, 2025, in Bergen County Superior Court alleging that the city’s proposed use of eminent domain violates the New Jersey and US constitutions.
At the center of the controversy is a February City Council decision designating the site as an area in need of “abandoned” redevelopment, followed by the approval of a plan to redevelop the former Sears site.
The lawsuit maintains that the property is economically viable and does not qualify for abandonment under state law.
The building’s owners—Arcolo Hackensack LLC, Sugensteve Hackensack LLC, Sugencole Hackensack LLC, and Sugengran Hackensack LLC—argue that the designation was motivated by redevelopment aspirations rather than documented blight and that the city improperly used the threat of eminent domain to promote private development.
Realtor.com reached out to the plaintiffs’ attorney, Jameson P. Van Eck, who said, “We have no comment at this time.”
Hackensack Mayor Casey Gaineswho was sworn in on July 1, released the following statement to the Hackensack Daily Voice: “The city is currently looking into a claim made by the owners of the Sears property in a lawsuit recently filed against the Mayor. John Labrosse and his City Council illegally designated the site as an area in need of redevelopment before last year’s election, violating not only state law, but the owners’ rights under both the New Jersey and United States constitutions. The city will respond to the lawsuit after our investigation into the actions of the previous administration is complete.”
According to the lawsuit, Hackensack made it clear that the building had been vacant since 2020, citing inspections, media reports and phone calls with the building department.
The owners dispute that claim, saying the city ignored important facts, including a decades-old lease and a tenant still working on the site.
They also argue that the city failed to meet legal standards under the federal redevelopment law, acted unfairly and in bad faith, and did not provide proper notice of the development designation.
The lawsuit seeks to invalidate the writ, block its enforcement, and recover damages, legal costs, and other relief.
The main road is being renovated
City officials have spent years working to revitalize Hackensack’s Main Street after decades of decline.
In the 1950s, the corridor was a major draw for Bergen County shoppers, filled with bustling stores, movie theaters, and restaurants.
Like central cities across the country, however, Hackensack’s Main Street gradually lost its vibrancy over time.
Now that the area is being renovated, there are many restaurants, cafes, and restaurants—and as the city grows, luxury apartments are also being built there.
The 270-unit rental apartment building Ora debuted in downtown Hackensack in February 2025 where two-bedroom rentals will cost $3,495.
“Our investment in Hackensack has helped transform the city, welcoming residents, visitors, and businesses to be a part of its exciting transformation over the past few years,” developer Ora said.James Hanson II said a press release. “With Ora’s opening, we are proud to continue that momentum, inviting more residents and businesses to experience all that Hackensack has to offer.”
Apartments at Meridia on Main offer luxurious amenities such as a state-of-the-art fitness center, social room, and library with dining room.
There is also Crossroads 389, an 82-unit multifamily located in the heart of downtown Hackensack. Studios and one- and two-bedroom apartments feature fine finishes such as quartz countertops, stainless steel appliances, and in-unit washers and dryers.
