- Ingka Investments will soon own one-third of a 1 MSF 570 Fifth Ave. project, with Extell Development Co. retaining two-thirds.
- The project includes an 80 KSF Ikea customer meeting point, reflecting the company’s commitment to enhancing urban accessibility.
- Scheduled for completion in 2028, this development is the largest on Fifth Avenue in over 60 years.
According to the Financial Times, Ingka Investments, Ikea’s investment arm, acquired a one-third stake in a landmark development project at 570 Fifth Avenue, as reported on Globest.
Deal Details
The project, a 1 MSF mixed-use commercial building developed by Extell Development Co., is set to be the largest on Fifth Avenue in more than six decades.
Extell, which will retain two-thirds ownership of the development, had been seeking a partner for the project for several years. “We came up with Ikea, and they are very interested, of course, in getting a large retail space in the heart of the city,” said Gary Barnett, Extell’s founder and chairman, according to Bloomberg.
Located at the intersection of the Plaza and Grand Central districts, the building will feature 80 KSF of retail space designated for an Ikea customer meeting point. This space, owned entirely by Ikea, will be situated over two large cellar levels with a prominent corner entrance on Fifth Avenue.
Urban Initiatives
The new meeting point is part of Ikea’s broader strategy to boost its presence in city centers.
Last year, Ikea opened over 70 of these smaller-format stores, pop-ups, and planning studios globally to improve accessibility for urban customers. These spaces allow customers to meet with consultants and place orders for home delivery.
What’s Next
The investment in 570 Fifth Ave. is part of Ingka’s larger strategy to expand Ikea’s footprint in the U.S. Earlier this year, Ikea announced plans to open eight new stores across the country over the next three years.
The move also aligns with a trend of high-end retailers such as Prada, Kering, and LVMH purchasing property on Fifth Avenue.
