The Sears building in Hackensack has been a fixture for nearly a century. But as the former giant of American retail withers away, the fate of this shuttered North Jersey property is in jeopardy.
Transformco, which acquired Sears’ assets several years ago for its real estate more than for its fading brand, filed a complaint in January alleging the city curbed the development potential of the site at 436 Main Street, NorthJersey.com reported. The change restricts what the owner can do with the 90-year-old property.
In December, the City Council approved its own concept for the Sears site, calling for mixed-use residential and commercial development, while prohibiting medical use. The lawmakers required the facade and tower to be maintained, though the height can be increased to 14 stories.
“It’s an iconic building to Hackensack and we wanted a plan that understood the value of that property in relationship to the downtown,” said Francis Reiner, a redevelopment consultant for Hackensack.
Transformco alleges the zoning change was made after the company was approached by Holy Name Medical Center about a potential 90,000-square-foot building at the site. Officials in the city say they were not approached by the medical center, and Holy Name, a 361-bed facility in Teaneck, declined to comment to NorthJersey.com.
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Transformco doesn’t own the Sears building, but has a long-term lease on it. The company does own the surrounding property, including an auto center and parking lot. A venture led by Arcolo Limited Partnership, which owns the Sears, also sued the city, according to NorthJersey.com.
City spokesperson Chris Marx believes Hackensack will prevail in the lawsuit, as it did in another case recently.
“The allegations made in the lawsuit by the entities currently in control of the property are without merit and were part of a similar case involving the same parties that has already been thrown out of court,” Marx said.
Sears was one of the largest retailers in the nation until the 1990s, but struggled to pivot to e-commerce. Its downfall culminated in a Chapter 11 bankruptcy filing in 2018. Since then, iconic Sears venues have been disappearing at a rapid rate.
Late last year, an outpost in Flatbush, Brooklyn, served its last customer after being in business at the same corner since 1932. Transformco said the Art Deco building was a prime candidate for redevelopment, but didn’t disclose plans.
Longtime Sears stores in Massapequa and the Bronx also were marked for closure last year.
[NorthJersey.com] — Holden Walter-Warner