Ikea parent invests in Fifth Avenue building as part of U.S. growth plan

LEIDEN, Netherlands — Ingka Investments, which is part of the largest Ikea retailer, Ingka Group, has invested in 570 Fifth Avenue in New York as part of a long-term strategy to enhance its city-center retail presence.

In alliance with Extell Development Co., the partnership marks the largest development on Fifth Avenue in more than 60 years. The 1-million-square-foot mixed-used commercial building will include an 80,000-square-foot Ikea store, 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.

“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.”

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.

See also:

  • Ikea checks all the boxes to earn fastest-growing retailer title
  • Ikea announces second global price cut for the year

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