IKEA is coming to Fifth Avenue in Midtown
IKEA’s Red Hook location. Photo courtesy of Eden, Janine, and Jim on Flickr.
IKEA is returning to Manhattan. The home goods store will open a new store in Midtown within 570 Fifth Avenue, an office tower developed by Extell Development. Ingka Investments, the investment arm of Ingka Group which owns most IKEA stores worldwide, plans to open an 80,000-square-foot store across two cellar levels with a corner entrance on Fifth Avenue. The Swedish company opened a store on the Upper East Side in 2019 but closed about two years later.
The IKEA store will include a “customer meeting point,” a new concept from the company tailored for customers “making larger and more complex purchases,” according to Pix 11.
Ingka Investments will hold a one-third stake in the project alongside preferred equity components and full ownership of the prime retail space where the IKEA customer meeting point will be located. Extell will hold a two-thirds stake in the project.
“This next phase of our investment and expansion in the U.S. signals our commitment to bring IKEA closer to people in city centers,” Javier Quiñones, CEO and chief sustainability officer of IKEA U.S., said. “While we are in the very early stages of planning for the IKEA location, we can promise to deliver an experience that is full of inspiration and designed to meet the home furnishing dreams of many New Yorkers.”
570 Fifth Avenue, the largest development on Fifth Avenue in over half a century, will be a mixed-use commercial tower spanning 1,000,000 square feet. It will offer state-of-the-art amenities and world-class architecture. The project is targeting a minimum LEED Gold certification and will follow high sustainability standards and principles of low-carbon operation, according to a press release.
The building is expected to open in 2028.
“We have been working on assembling this project for almost two decades and Ingka Investments’ substantial commitment allows us to move forward with the construction and leasing of the best new office building in New York,” Gary Barnett, founder and chairman of Extell, said.
Barnett continued: “This will be the first office tower to begin construction in the city post-pandemic and it is a great sign of New York’s resilience. We are thankful to the Ingka Group team for their confidence in the project and New York’s future and look forward to a rewarding partnership.”
In 2019, IKEA opened a “planning studio” at 999 Third Avenue. The store was delivery-only and tailored to city living and small spaces. The store closed in 2022 with plans to reopen a similar concept in the future. IKEA’s Rego Park location, the first small-format store in the U.S., opened in 2021 but closed about a year later because of the “changing needs” of its customers, the Real Deal reported.
The IKEA in Red Hook opened in 2008 and continues to be a popular destination for ready-to-assemble furniture.
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