Developer Says They Were Cut Out Of Deal To Build 45-Story Tower At 259 George Street In New Brunswick

NEW BRUNSWICK, NJ — A developer says they were cut out of a deal to develop 259 George Street in New Brunswick, a plum piece of property where a preacher's son partnered with a real estate developer to build a soaring 45-story apartment building.

If it gets built, 259 George Street will be the largest redevelopment project in New Brunswick history, and the tallest building in Middlesex County.

Abundant Life Family Worship Church currently sits at 259 George Street; the church owns the land. The church's pastor is Rev. George Searight. His son, George Searight, Jr., teamed up with developer Shimon Jacobowitz to build the 45-story, 800-unit apartment high-rise directly behind the church.

In 2024, the New Brunswick Housing Authority approved NB Plaza Owner Urban Renewal, LLC — formed by Searight, Jr. and Jacobwitz — as the redeveloper of the site. (Because the land is privately owned by the church, this did not have to go through a public bidding process.)

However, last year another developer named Folxco, LLC (owned in part by Moshe "Mark" Rigerman) sued Jacobowitz and his company, called Ifany. Their lawsuit also sued both Rev. Searight and his son, the church and an LLC called SDG NB Plaza, which is owned by Searight, Jr.

Folxco used to be business partners with Jacobowitz before they say he cut them out of the deal. Folxco LLC is the construction affiliate of Strekte Corporation, a Manhattan/Jersey City developer.

They say they had a prior agreement with Rev. Searight and his son, dating back to 2022, whereby the church would transfer its property to an LLC jointly owned by Folxco, Ifany and the church. Folxco and Jacobowitz were supposed to "jointly act as the developers," said the lawsuit. The apartment building they planned to build was going to be much smaller; it was only supposed to be 400-feet tall.

The three parties signed a Letter of Intent (LOI).

"Instead, Jacobowitz schemed to cut Folxco out of the development project ... by negotiating directly with Searight," alleges the lawsuit.

They also say Jacobowitz made personal payments to Rev. Searight and Searight, Jr. to influence their decision to work only with him.

Folxco's lawyers provided an agreement that show Jacobowitz paid Searight, Jr. $250,000 on signing of their deal, and that he will pay him an additional $1.5 million when he receives final approval of its site plan, plus $5.2 million when Jacobowitz gets his construction loan.

In total, Searight, Jr. stands to be paid $6.9 million if Jacobowitz builds the high-rise apartment tower.

"Searight II was on very friendly terms with Jacobowitz and open to Jacobowitz’s manipulation," said Folxco's lawsuit.

Folxco is alleging breach of contract, among other claims. The lawsuit is still pending in Middlesex County Superior Court.

There is also a lis pendens hanging over the property, meaning the land is in dispute, and which serves as a "cloud on title" warning to potential lenders.

David Slarskey, a lawyer representing Folxco, spoke at the March 9 New Brunswick Planning Board meeting, where he said a land survey Jacobowitz presented to the board was actually done by Folxco, and is owned by Folxco.

"What's going on with this development is you have been lied to," Slarskey told the New Brunswick Planning Board.

Shimon Jacobowitz was sued twice before over 259 George Street in New Brunswick

This is also only the latest lawsuit over 259 George Street, an extremely desirable piece of land. Two other lawsuits were previously filed against Jacobowitz and Abundant Life Church over this piece of property, but both were dismissed for lack of standing.

However, all three lawsuits say Jacobowitz has lied to both the church and to the city of New Brunswick, and misrepresented himself as an experienced real estate developer.

"Jacobowitz holds himself out as an entrepreneur and businessman with experience in real estate management," read Folxco's lawsuit. "In reality, Jacobowitz has only bought and flipped a few single-family homes and has no experience developing large-scale real estate projects."

Folxco also says Jacobowitz claimed their prior development projects as his own, similar to the way they accused him of stealing their land survey.

Jacobowitz's lawyer is Thomas Kelso, who is also a lawyer for Middlesex County and a lawyer for the city of New Brunswick Development Corporation.

Multiple attempts to contact Jacobowitz for this article, in both phone calls and emails to his lawyer, were not returned. Multiple attempts to contact Rev. Searight and his son, Searight, Jr., were also not returned.

The high-rise apartment tower will cost anywhere between $300 million and $500 million to build. Kelso previously said Jacobowitz has $90 million in equity to build it.

Kelso told the New Brunswick Housing Authority Board at their February 2024 meeting where they chose Jacobowitz to be the redevevloper that Jacobowitz will present "a full financial plan down the road."

Last week, Kelso told the New Brunswick Planning Board the entire tower will be constructed using private funding. However, Jacobowitz and Searight do plan to apply for ASPIRE tax credits from the state, he said, under the promise that they will double the amount of affordable housing in the tower, increasing it from 10 percent to 20 percent.

At that March 9 meeting, Kelso stressed how important it is for Jacobowitz to receive those ASPIRE tax credits. Kelso called the tax credits "a significant tool" allowing them to build the high-rise.

The New Brunswick Planning Board approved the project in an unanimous 8-0 vote at their March 9 meeting last week.

Why is 259 George Street such a valuable piece of property? It is located within walking distance of the New Brunswick train station and the HELIX, the tech/science/pharma "mega campus" currently under construction near the train station. Once it opens, the HELIX will house skyscrapers occupied by Rutgers University, RWJBarnabas, Hackensack Meridian Health and Tel Aviv University. The upper part of George Street, closest to the train station, is bustling with shops and restaurants. However, the lower part, where the church is located, is blighted; it has long been designated by the city as an area in need of redevelopment, under the Lower George Street Redevelopment Plan.

New Brunswick Planning Board Unanimously Approves 45-Story Apartment Building On George Street (March 11)

Watch the March 9 New Brunswick Planning Board meeting: