Named after Parchimer Allee, which honours the town of Parchim in Mecklenburg.
The street got its name in 1927, when the Hufeisensiedlung (Horseshoe Estate) was built; its streets recall places and characters of the writer Fritz Reuter (1810–1874), who went to grammar school in Parchim from 1828 to 1831. Part of it was once the Kirschallee (cherry avenue), and it is still known for its cherry blossom. A 2008 proposal to rename the station Hufeisensiedlung was rejected.