IKEA Plans Second Manhattan Store

Ingka Group (Leiden, Netherlands), owner of most IKEA stores worldwide, has acquired the building housing a Nike flagship store in New York’s Soho, and plans to turn the first two floors into one of its home furnishing stores. Ingka’s announcement steered clear of mentioning Nike by name, saying the acquisition involved “a prime retail and office property at the intersection of Broadway and Spring Street.”

The company did not disclose terms of the deal for the building, which was built in 2016. However, a variety of news sources, including the Commercial Observer, confirmed the building is the Nike site and put the price tag at $213 million.

Ingka said its plans for the building involve placing a 25,000-square-foot IKEA store on its first two floors and premium office space in the four floors above that. The company did not provide a timetable for the store’s debut.

“We are boldly reimagining how we reach and serve our customers, and this new store in the heart of New York City is another step for IKEA to be closer to the many,” said Javier Quiñones, CEO & Chief Sustainability Officer, IKEA U.S. “As we celebrate 40 years in the U.S., this investment on one of New York’s busiest retail corners underscores our commitment to accessibility and meeting customers where they are.”

Said Peter van der Poel, Managing Director of Ingka Investments: “This marks Ingka Investments’ fourth acquisition of prime commercial real estate to support IKEA’s growth in the world’s leading cities. 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.”

This Broadway buy is Ingka’s second investment in Manhattan, following last year’s acquisition of the building at 570 Fifth Avenue. The IKEA store in that building’s lower two levels is slated to open in 2028.

Other recent IKEA store openings in the U.S. include in McAllen-Pharr and San Marcos, Texas; Hunt Valley, Md., Cherry Hill, N.J., and Beaverton, Ore.