Ingka Investments, the investment arm of Ikea parent company Ingka Group, has purchased a building in the heart of NYC’s SoHo that will be the eventual home to a new 25,000-square-foot Ikea store spanning two levels. This will be the second Manhattan store for the furniture and lifestyle retailer; the first will also be in an Ingka-owned building, located at 570 Fifth Avenue in Midtown. The SoHo building’s purchase price was $213 million, according to Reuters.
The acquisition is part of Ingka Group’s three-year, $2.2 billion investment in the U.S. announced in April 2023, which has included opening new stores, strengthening its fulfillment network and enhancing regional product offerings. Recent openings have included Ikea stores in McAllen-Pharr and San Marcos, Texas; Hunt Valley, Md.; Cherry Hill, N.J.; and Beaverton, Ore. Internationally, the group has expanded its city center presence with new stores and innovative retail formats in major cities including Stockholm, London, Paris, Vienna and Madrid.
Property Ownership Keeps ‘Affordability at the Core’
“This marks Ingka Investments’ fourth acquisition of prime commercial real estate to support Ikea’s growth in the world’s leading cities,” said Peter van der Poel, Managing Director of Ingka Investments in a statement. “Through property ownership, we can secure Ikea’s presence at the most important retail hubs while keeping affordability at the core.”
“This new store in the heart of New York City is another step for Ikea to be closer to the many,” added Javier Quiñones, CEO and Chief Sustainability Officer at Ikea U.S. in a statement. “As we celebrate 40 years in the U.S., this investment in one of New York’s busiest retail corners underscores our commitment to accessibility and meeting customers where they are.”
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Before the new store opens, customers hungry for the Ikea experience can visit the retailer’s food-focused NYC pop-up from Oct. 2 to 26. Additionally, beginning this fall Ikea will operate shop-in-shops in select Best Buy stores.
