Heidenberg expands retail portfolio with acquisition of Paramus, NJ shopping center

JV partnership includes Red Starr Investments, Norse Realty Group, and DAG Paramus

Paramus, NJ — A joint venture partnership between Heidenberg Properties Group, Red Starr Investments, Norse Realty Group, and DAG Paramus announced the acquisition of the Paramus Park South in Paramus. Paramus Park South is a 181,150 s/f shopping center anchored by a 100,223 s/f Stew Leonard’s Supermarket and a 21,934 s/f Atlantic Health Systems.

The shopping center is strategically located 23 miles NW of NYC occupying a 14-acre site with access from NJ Rte. 17 (137,800 vehicles per day) and bordering the Garden State Pkwy. (71,700 vehicles per day) in Paramus. Paramus is a retail mecca with the highest per capital retail spending in the country, including over $5 billion in annual sales. Similar to Heidenberg Properties’ April ’24 acquisition of At Colonie Center, in Albany, NY, the Center is attached and has direct access to the neighboring Paramus Park Mall, tenanted with over 60 retailers including Macy’s, L.L. Bean, Old Navy, Uniqlo, Ulta Beauty, and Sephora.

Paramus Park South is currently 67% occupied and has 59,000 s/f of upper level space available which is ideal for experiential uses. Additionally, the upper level has the potential for highly visible signage and exposure from the neighboring Garden State Pkwy. Heidenberg Properties’ business plan includes creating vertical access to and from the adjoining Paramus Park Mall, creating further operational synergies between the two properties.

Robert Heidenberg, president and CEO of Heidenberg Properties, said, “Acquiring Paramus Park South was an opportunity to add a fantastic location to our portfolio that is in our backyard. Not only do we acquire a shopping center in one of the best retail markets in the United States, we added another dominant grocer in Stew Leonard’s as well as the ability to add value through strategic lease up of the upper level. We look forward to the continued evolution of Paramus Park South by adding dynamic uses and solidifying Paramus Park South as a compelling draw in the market.”

This acquisition caps a year in which Heidenberg Properties has acquired over $80 million of grocery-anchored shopping centers exceeding 525,000 s/f of retail, including the Whole Foods anchored At Colonie Center in Albany, NY and the Stop & Shop anchored Shops at Ledgebrook in Winsted, CT. Heidenberg Properties, Norse Realty Group and the principals of DAG Paramus have acquired five properties together over the past 12 years while this is first transaction with Red Starr Investments. Capital advisers Ackman-Ziff arranged the joint venture and financing while CBRE’s National Retail Partners served as the broker in the transaction.