Ikea is strengthening its New York City footprint with the purchase of a prominent SoHo property that will become home to its second Manhattan store.
Ingka Investments, the real estate arm of Ingka Group, Ikea’s largest global retailer, confirmed it has acquired the Broadway at Spring Street building, currently occupied by a Nike flagship. Reuters reported the deal was valued at $213 million.
The five-and-a-half story building, constructed in 2016, spans 53,000 square feet. Ikea will occupy the first and second floors for retail operations, while the lower level will be used for storage and back-office functions, totaling about 25,000 square feet. The upper floors will be renovated into premium office space.
“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 presence at the most important retail hubs while keeping affordability at the core.”
The SoHo purchase follows Ingka’s 2024 investment in 570 Fifth Avenue, where a mixed-use retail and office development is underway that will host Ikea’s first Manhattan location.
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