Ingka Investments — the investment arm of Ingka Group that owns the majority of Ikea stores worldwide — recently announced that it was joining forces with the Extell Development Company for a new tower in NYC’s iconic Fifth Avenue corridor.
Located at 570 Fifth Ave. on the corner of West 46th Street, the mixed-use project is a Class A Manhattan office and retail tower that incorporates 1 million square feet and reportedly represents the largest development on Fifth Avenue in more than six decades. At the same time, it marks Ingka’s third attempt at a successful Ikea location in the New York City metro. The company will own one-third of the property and make full use of the ground-floor retail component.
Situated at the intersection of the Grand Central and Plaza districts, the site offers unparalleled access to transportation and is surrounded by world-famous architecture, as well as an abundance of services and amenities. The building design includes 80,000 square feet of prime Manhattan retail space arranged across two large cellar levels and features a corner entrance off Fifth Avenue. This space will serve as a new Ikea customer meeting point.
“We are excited to share the news of this major investment that boosts 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.”
In addition to advancing the company’s strategy to adapt its retail operations to shifting consumer shopping preferences and urban growth, this investment also strengthens the joint venture’s focus on sustainability and wellness. In fact, the 570 Fifth Ave. development aims to achieve, at minimum, a LEED Gold certification as its design is based on low-carbon operation principles and high sustainability standards. Drawing on the vibrant energy of Manhattan, this choice of location banks a lot of its estimated future success for both the retail and office space components on its superior accessibility as the intersection is just a three-minute walk from Bryant Park and Grand Central Station.
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