Ikea Buys SoHo Retail Building for 2nd Manhattan Store

Ingka Investments, the investment arm of Ingka Group, which owns the majority of IKEA stores worldwide, recently announced plans to bring a second IKEA location to Manhattan, N.Y.

The company announced a new investment in the borough’s SoHo neighborhood, following the acquisition of 570 Fifth Ave. last year. Ingka Investments has reportedly acquired Wharton Properties’ 529 Broadway, which is currently home to Nike’s flagship store.

Ingka reportedly paid $213 million for the 2016 building and plans to transform the property into a mixed-use building with retail and office space.

“This marks Ingka Investments’ fourth acquisition of prime commercial real estate to support IKEA’s growth in the world’s leading cities,” said Peter van der Poel, managing director of Ingka Investments. “Through property ownership, we can secure IKEA presence at the most important retail hubs while keeping affordability at the core. This new location in New York City allows us to continue offering inspiring and accessible home furnishing solutions to everyone, regardless of their budget.”

Located at the intersection of Broadway and Spring Street, the property incorporates more than 44,000 square feet of Manhattan retail space across six stories. One of just a few recently constructed properties in the heart of SoHo — one of New York City’s top retail destinations with more than 12 million visitors annually — 529 Broadway was designed to offer a modern retail experience while blending in well with the historic character of the neighborhood.

529 Broadway was completed in 2016 and incorporates more than 44,000 square feet of premium Manhattan retail space in the heart of the historic SoHo neighborhood.

This recent acquisition is in line with the company’s efforts to expand IKEA’s presence in the U.S. through new store formats. It also builds on Ingka Group’s more than $2.2 billion growth strategy to meet customers where they are and maximize fulfilment in the U.S.

The IKEA store will be located on the first and second floors of the building, spanning a total of 25,000 square feet. The lower will be used for storage and other back-office facilities. Next, contrary to ongoing trends of converting office space to other purposes, Ingka will renovate the four upper floors for office use.

“We are boldly reimagining how we reach and serve our customers, and this new store in the heart of New York City is another step for IKEA to be closer to the many,” said Javier Quiñones, CEO and chief sustainability officer with IKEA U.S. “As we celebrate 40 years in the U.S., this investment on one of New York’s busiest retail corners underscores our commitment to accessibility and meeting customers where they are.”

Other recent store openings in the U.S. include the new IKEA stores in: McAllen-Pharr and San Marcos, Texas; Hunt Valley, Md.; Cherry Hill, N.J.; and Beaverton, Ore.