The parent company of retailer Ikea has invested in property at 570 Fifth Avenue in New York City, which will be the site of an 80,000-square-foot Ikea store. Ingka Investments, in partnership with Extell Development Co., has invested in the 1-million-square-foot mixed-use commercial building, which marks the largest development on Fifth Avenue in more than 60 years.
“We are excited to share the news of this major investment that boost our growth strategy across the U.S., a vital market for Ingka Group,” said Peter van der Poel, managing director of Ingka Investments. “Investing in Fifth Avenue goes beyond just growing our footprint; it’s about changing the way we engage with consumers and playing a part in creating strong, sustainable economies and business communities.”
The Ikea store will be arranged over two cellar levels, with a corner entrance on Fifth Avenue. The building is within walking distance of Grand Central Station and Bryant Park, reports Furniture Today.
Since 2019, Ingka Group has opened Ikea stores in major cities, including Tokyo, Madrid, Paris and London and studio concepts in Vienna, Barcelona, Berlin and Prague. Ikea currently has more than 50 retail locations within the United States.
“This next phase of our investment and expansion in the U.S. signals our commitment to bring Ikea closer to people in city centers,” said Javier Quinones, CEO and chief sustainability officer for Ikea U.S., which is a Top 100 retailer. “While we are in the very early stage of planning for the Ikea location, we can promise to deliver an experience that is full of inspiration and designed to meet the home furnishings dreams of the many New Yorkers.”
Ingka Investments has taken a one-third stake in the project and full ownership of the retail space where the store is located. Extell holds the remaining two-thirds. The building, which is planning for LEED Gold certification, is scheduled for tenant delivery in 2028.