IKEA Parent Buys SoHo Asset for $213M

October 2, 2025

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The retailer will open a new store, as well as four levels of office space.

The investments division of Ingka Group, the world’s largest IKEA retailer, has acquired a 53,000-square-foot, six-story building in SoHo. The asset traded for $213 million, according to Yardi Research Data.

The property was still under the ownership of the joint venture between Wharton Properties, A&H Acquisitions, Aurora Capital Associates and Thor Equities, Commercial Observer reported in 2022. The partnership paid $146.9 million for the development back in December 2012, the same source shows.

The retailer plans to turn the building at 529 Broadway into a mixed-use development, which will include a two-level IKEA store and four levels of office space. The property, which officially opened in 2016, is currently home to a Nike retail store.

This will be the second IKEA store in Manhattan. In 2024, the company announced plans to open an 80,000-square-foot store at 570 Fifth Ave. That asset is expected to unveil in 2026, according to The Real Deal. The company previously operated a 17,000-sqaure-foot “Planning Studio” on the Upper East Side, but that space closed in 2022 after opening in 2019.

The SoHo investment is part of Ingka’s $2.2 billion U.S. expansion efforts, which the company announced in 2023. The goal of that initiative is to make it easier for customers to access IKEA by adding new stores in more populated areas and expanding delivery options.

Flagship retail assets changing hands in SoHo

Other notable assets have changed hands in SoHo in recent months. In April, Ralph Lauren acquired the retail space at 109 Prince St. The luxury fashion brand paid $132 million for the property, which it had occupied since 2010. Swiss investor Jean-Pierre Lehmann was the previous owner of the two commercial condominium units.

Manhattan’s retail market, and SoHo in particular, remained strong throughout the first half of 2025, according to a second quarter report from Cushman & Wakefield. Average asking rents in SoHo climbed 6.3 percent year-over-year as of June, a better figure than broader Manhattan’s 1.0 percent increase.

The availability rate across Manhattan’s prime retail corridors dropped to 12.8%, the lowest rate since the end of 2014.