Ingka Investments, the investment arm of Ingka Group (the largest Ikea retailer in the world), said it has acquired a “prime retail and office property” on Broadway at Spring Street in Manhattan.
The site, in the heart of SoHo, will be the future home of Ikea’s second store in Manhattan. It is currently home to a Nike flagship. Ingka is buying the building from Jeff Sutton, Wharton Properties. Reuters put the purchase price at $213M.
Ingka Group will operate the entire building, comprising of five and half floors plus a lower level, for a total of 53,000sq ft. Built in 2016, it is one of very few newly constructed properties in SoHo. The Ikea store will occupy the first and second floors, with the lower level used for storage and other back-office facilities, covering approximately 25,000sq ft. The upper four floors will be renovated for premium office use.
“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. “Through property ownership, we can secure Ikea’s presence at the most important retail hubs while keeping affordability at the core.”
