YONKERS, NY – The joint-venture partnership of Nuveen Real Estate, Taconic Partners and North American Properties has acquired the mixed-use lifestyle center, Ridge Hill, in Yonkers, NY for $220 million. The companies plan to rebrand and transform the property into a preeminent outdoor lifestyle center.
Renovation plans for the 74-acre, 1.2 million-square-foot complex are still under development, however, the partnership plans to incorporate state-of-the-art initiatives to enhance the property’s public spaces, street design and parking amenities. The companies additionally plan to attract local and New York City-inspired food and beverage concepts, as well as national luxury apparel and boutique fitness providers.
Ridge Hill was originally developed in 2011 and it is currently tenanted by various local and national retailers, including Apple, Banana Republic, Sephora, H&M, the Container Store, Uniqlo, LEGOLAND Discovery Center, National Amusements Showcase Cinema de Lux, Whole Foods, LA Fitness and more.
Located near the New York State Thruway and the Sprain Brook Pkwy, the lifestyle center offers easy access to Westchester and Putnam counties, as well as the New York City metropolitan area.
“We see this as an attractively-priced asset in an evolving sector that fits within our well-diversified New York property focused real estate fund,” states Nadir Settles, managing director at Nuveen and head of the New York Property Fund. “The acquisition of Ridge Hill reflects a generational opportunity to re-position an already dominant lifestyle center that sits in the heart of one of the country’s most affluent and densely populated regions.”
North American Properties will begin operations and repositioning efforts in May 2022.
“Over the last decade, Ridge Hill has become a core component of the Yonkers community and we are thrilled to have the opportunity to enhance it by applying our high-touch, hospitality-driven approach toward management,” says Tim Perry, North American Properties managing partner.
Perry adds, “We coined the term ExperienceMakers for our team years ago because making an impact on the lives of every guest we serve is in our DNA, and we can’t wait to introduce ourselves to the market. We’ve already started working to enhance the public realm, bring technology forward in the guest and parking experience, as well as longer term unlocking the full development potential of the site. Helping to design and define this will require community engagement to determine what’s missing, from a retail, as well as experiential, perspective.”
Through the acquisition and transformation, the partnership aims to create a lifestyle center that will serve the northern New York City metropolitan area as a modern shopping mall that features outdoor settings and multiple uses.
According to research by JLL, the top 20 lifestyle centers in the highest population US markets reported nearly 8.1 million visits in August 2021, compared to 1.3 million visits in April 2020. Additionally, during Q2 2021, lifestyle centers garnered 46% higher rents than regional malls and 11.5% higher rents than super regional malls.
Ridge Hill represents Nuveen and North American Properties third project together. The two companies recently acquired the open-air lifestyle center, The Forum on Peachtree Parkway in Peachtree Corners, GA.
Ridge Hill serves as Nuveen and Taconic Partners’ first investment in value-add retail together, however, the two firms have collaborated on projects since 2015. The two companies have collectively invested more than $2 billion across more than two million square feet in New York. Additionally, in 2021, the two firms completed a $260 million fundraising round for their jointly-sponsored, value-add New York City Property Fund II.