Ikea operator Ingka Investments has purchased a prime retail site at 570 Fifth Avenue in New York City – in the heart of the city’s luxury precinct.

Situated at the intersection of the Plaza and Grand Central Districts, the 1 million sqft mixed-use commercial building is under development in partnership with Extell Development Company and represents the largest new commercial project in the area in more than 60 years.

The building’s prime retail space – spanning 80,000sqft with two large cellar levels and a corner entrance on Fifth Avenue – will feature an Ikea customer meeting point. The store will prioritize sustainability and wellness, aiming to achieve a minimum LEED Gold certification for the tower.

Javier Quinones, CEO and chief sustainability officer for Ikea US, highlighted that this expansion aligns with the brand’s commitment to establishing more stores in city centers to better serve local communities.

“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,” he added.

Peter van der Poel, MD of Ingka Investments, said the group’s Fifth Avenue investment is about more than growing its footprint.

“It’s about changing the way we engage with consumers and playing a part in creating strong, sustainable economies and business communities,” he said.

Ingka Investments will hold a one-third stake in the project, including full ownership of the prime retail space hosting the Ikea customer meeting point. Extell will hold a two-thirds stake in the project.

The building is expected to be ready for tenants by 2028.