Photo courtesy of Ingka Investments
Soho is getting an IKEA. The Scandinavian furniture retailer purchased a six-story commercial building at 529 Broadway from billionaire Jeff Sutton’s firm, Wharton Properties, for $213 million, according to property records. Ingka Group, which owns most IKEA stores worldwide, plans to open a 25,000-square-foot store on the building’s first and second floors, as The Real Deal first reported, continuing its push for smaller-format locations.
“This marks Ingka Investments’ fourth acquisition of prime commercial real estate to support IKEA’s growth in the world’s leading cities,” Peter van der Poel, managing director of Ingka Investments, said in a press release.
“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.”
Currently occupied by Nike, the 58,000-square-foot commercial building, designed by BKSK Architects to resemble a 19th-century hotel previously on the site, is far smaller than IKEA’s typical stores.
IKEA’s Red Hook location, which opened in 2008, spans more than 336,000 square feet and serves as a “big-box” retail destination, while the Broadway site is designed for a more traditional retail format.
Located on the corner of Broadway and Spring Street, the building’s upper floors will be converted into office space, which Ingka will operate. Sutton’s firm purchased the building for $146.9 million in 2013, according to Crain’s.
It’s unclear when Nike, which currently occupies all six floors, will vacate the building. When Nike first moved in almost 10 years ago, the starting rent was reported at $257 per square foot, as reported by Crain’s.
The Soho location follows IKEA’s plan to open more smaller-scale stores. In 2019, the company launched a “Planning Studio” at 999 Third Avenue in a 17,000-square-foot space, which closed after three years with plans to reopen a similar concept in the future.
Similarly, a 115,000-square-foot store the brand opened in Rego Park in January shuttered in less than two years due to the “changing needs” of its customers, The Real Deal reported.
IKEA is also planning another Manhattan outpost on Fifth Avenue in Midtown, which the company announced in July 2024. The 80,000-square-foot store will occupy two cellar levels at 570 Fifth Avenue, developed by Extell Development, with a corner entrance on Fifth Avenue. The building is slated to open in 2026, while the IKEA would open in 2028.
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