Extell acquires Fifth Ave. lot for Manhattan Ikea tower

A major real estate company has completed a significant purchase on Fifth Avenue in Manhattan. After ten years of negotiations, Extell Development's Gary Barnett has secured the last holdout lot needed for his new project. The recently acquired land at 576 Fifth Ave. will be combined with an adjacent property at 574 Fifth Ave. The total cost for this purchase was $175 million. Barnett described the expense as "a stupid price," but he emphasized the importance of controlling the entire block. The development will feature a 33-story tower with 1.1 million square feet of office space and the first-ever Ikea superstore in Manhattan. The Ikea store will occupy 80,000 square feet and is a partnership between Barnett and Ingka Investments, Ikea's parent company. Extell's acquisition journey faced challenges, including competition from Sae-A Trading Co., a South Korean firm that previously bought a nearby lot. Sae-A demolished an existing building but did not proceed with construction plans. Despite initially being willing to move forward without the corner lot, Barnett is now set to include it in his project. Plans for the new tower will be submitted to the Department of Buildings soon. Excavation work has already begun, and Barnett expects to deliver the completed tower to tenants within three years. The design of the building, by KPF Architects, includes various office spaces ranging from 27,000 to 65,000 square feet.