Fifth Avenue Welcomes Largest Development in 60+ Years
Ingka Investments, the subsidiary of Ingka Group—the largest IKEA retailer—has invested in Extell Development’s future office and retail tower on Fifth Avenue in Midtown Manhattan.
Under the terms of the agreement, Ingka will hold a one-third stake in the project alongside preferred equity components. In addition, the firm will have full ownership of the prime retail space, totaling 80,000 square feet, where an IKEA customer meeting point will be located. Extell will own the remainder of the project.
The property at 570 Fifth Ave. will be part of the real estate portfolio of Ingka Investments, marking a “significant step” in Ingka Group’s long-term strategy of enhancing its city center retail presence.
Since 2019, Ingka Group has opened stores and shops in major cities, including Tokyo, Madrid, Paris, and London, as well as planning studios in Vienna, Barcelona, Berlin, and Prague.
The largest in more than 60 years
The new Class A retail and office tower is the largest development on Fifth Avenue in more than 60 years and is scheduled for tenant delivery in 2028.
It will include a 1 million-square-foot mixed-use commercial building at the intersection of the Plaza and Grand Central Districts, providing access to key transportation hubs. Grand Central Station and Bryant Park are within walking distance.
Extell obtained an $185 million construction loan for the project from JPMorgan Chase in 2021, according to CommercialEdge information. In 2023, South Korea-based IGIS Asset Management acquired the note.
With a focus on sustainability and wellness, the tower is targeting a minimum LEED Gold certification and will exemplify high sustainability standards and low carbon operation principles.
The post Fifth Avenue Welcomes Largest Development in 60+ Years appeared first on Commercial Property Executive.
