Unibail-Rodamco-Westfield said it plans to build up to nearly 1,400 residential units as part of the major redevelopment and diversification of its large mall in North Jersey, one of the flagship U.S. properties that the global retail landlord decided to keep and is now looking to spruce up.
Paris-based URW and its co-developer Mill Creek Residential, based in Boca Raton, Florida, have kicked off the process of seeking local approvals from the Paramus Planning Board for their reimagining of the Westfield Garden State Plaza, one of the largest malls in New Jersey and a top-performing mall in the United States. The next borough hearing on the development is slated for Oct. 5.
URW, the owner and operator of shopping malls and other real estate in Europe and the United States, unveiled plans for the mall's transformation into a mixed-use property in May 2019, with Mill Creek coming on board in August 2022. The vision is to create a town center, a community hub for a sprawling suburb, with new residences and green space complementing Garden State Plaza's existing retail, dining and entertainment offerings.
The first phase entails the construction of about 575 luxury apartments that "will be integrated with the shopping center via a one-acre town green for residents, visitors, and shoppers to enjoy, and will also introduce a main street outdoor district featuring restaurants and everyday conveniences and services," according to URW. An additional 809 residential units are on the horizon, the company said.
URW is one of a number of large retail landlords — a group that includes Simon Property Group and Pennsylvania Real Estate Investment Trust — that are busy diversifying their malls by adding new uses such as multifamily housing, fitness centers, hospitality properties, office space and healthcare locations. The goal is to attract foot traffic for the site's retailers and other tenants.
And specific to URW, its investment to redevelop Garden State Plaza is a sign of its decision to abandon plans to divest all it U.S. malls and instead retain its U.S. flagship properties, like the Paramus mall.
The retail owner in a statement said that the initial phase at that mall will focus on the development of the luxury apartments and green space. It will include two mixed-use, five-story mid-rise buildings with nearly 600 apartments and roughly 25,000 square feet of retail space. The town green will be one acre.
Approval Process Underway
Stephen Sinisi, the attorney representing URW and Mill Creek, told CoStar News in a phone call on Monday that the town-green aspect of the redevelopment is a key part of the project, "a very important visual." The local approval process just started last week, he added.
"We have several additional hearings to go and additional witnesses," Sinisi said.
Later phases of the redevelopment will involve three different mixed-use areas. One will include a proposed 230-unit, 248,000-square-foot continuing-care facility for seniors, assisted living and memory care. That five-story building will have 9,000 square feet of retail space on its ground floor. That section of the redevelopment will also have a two-story, roughly 40,000-square-foot medical office building and a six-story parking garage.
Plans for a second area call for a seven-story, 180-room hotel with 85,500 square feet along with a 42,000-square-foot regional bus transit center, a 286,000-square-foot residential building, 2,550 square feet of retail space and a six-story parking garage.
A third area included in the plans is slated to have two five-story residential buildings, and roughly 2,500 square feet of retail space surrounded by a six-story parking garage.
Additionally, URW and Mill Creek are proposing to include about 809 mixed-income multifamily units for the later phase of the proposed redevelopment, with 112 of them to be designated as affordable apartments.
Breaking Ground
The redevelopment is progressing as planned, according to Stephen Fluhr, senior vice president of development for URW. The landlord and Mill Creek expect to break ground in late 2024, with the first round of apartments slated to open to residents in 2027.
“The focal point of the project is the town green, which when completed, will serve as a destination for the entire Paramus community while seamlessly connecting the existing mall with the new residential development," Fluhr said in a statement. "As part of our overall place-making strategy, we intentionally included significant community and sustainability features — like the restored Sprout Brook and an outdoor marketplace — that aim to enhance the lifestyle of all Paramus residents.”
Russell Tepper, Mill Creek's senior managing director of development, added, “We’ve been fortunate to develop similar high-quality, mixed-use environments across the country and through this experience, have seen the positive impact these developments can have on building a true sense of community.
Garden State Plaza is located at the busy intersection of Routes 17 and 4, with quick access to the Garden State Parkway as well as public transit serving New York City and surrounding Bergen County locales.
URW and Mill Creek touted several draws of the project, including its walkability. In addition to the housing, there will be services designed to meet residents’ needs, including quick-service to full-service restaurants with outdoor dining areas, personal services, art galleries, and health and fitness establishments.
The developers also said they are looking to provide a multi-generational living environment, to attract young professionals as well as empty-nesters, to create a diverse community.