Edited by: TJVNews.com

After ten years of relentless negotiations, strategic acquisitions, and high-stakes real estate maneuvering, Extell Development Chairman Gary Barnett has finally completed what many in the industry considered an elusive feat: securing the entire blockfront on Fifth Avenue between West 46th and 47th Streets, one of the most coveted parcels in Manhattan. As reported by The New York Post, Barnett finalized the acquisition of the last remaining piece — the holdout property at 576 Fifth Avenue — in a deal that officially closed on Thursday night.

The transaction marks the culmination of a decade-long chess game played across Midtown real estate, positioning Extell to build a 33-story, 1.1 million-square-foot mixed-use tower, featuring office space and a landmark retail component — Manhattan’s first-ever Ikea superstore.

According to the report in The New York Post, Extell paid a staggering $175 million for 576 Fifth Avenue, significantly more than the $101 million that South Korea’s enigmatic Sae-A Trading Co. shelled out for the same property just two years prior in 2021. Despite acknowledging the premium price, Barnett made no apologies for the hefty sum. “We paid a stupid price, but it gives us the whole block, which is amazing,” he told The Post, adding that the deal provides “the largest footprint available in Midtown and maybe anywhere.”

The acquisition consolidates Extell’s holdings at 574 and 576 Fifth Avenue, granting the developer a contiguous, uninterrupted site for the future skyscraper. The entire development will be readdressed under the unified designation of 570 Fifth Avenue.

The architectural plans for the development are being led by Kohn Pedersen Fox (KPF), one of the world’s premier architectural firms. Barnett revealed to The New York Post that plans for the tower will soon be submitted to the New York City Department of Buildings, with delivery to tenants expected in approximately three years. Excavation work is already well underway, signaling Extell’s urgency to move forward on the $1 billion-plus venture.

The tower’s blueprint will feature a gradation in floor sizes — massive 65,000-square-foot plates at the base, tapering to more intimate 27,000-square-foot floors at the top, offering flexibility for both large corporate tenants and boutique office users. The office component alone will exceed 1 million square feet, placing it among the largest new commercial developments in Midtown.

The project’s most headline-grabbing tenant is undoubtedly Ikea, whose parent company, Ingka Investments, has partnered with Extell on the development. Ingka will own 80,000 square feet outright, establishing the furniture giant’s first superstore in Manhattan — a significant milestone for both Ikea and the city’s retail landscape.

In a city where retail square footage is both premium-priced and hard to secure, Ikea’s move to Fifth Avenue represents a bold expansion strategy and a notable departure from its traditional big-box suburban locations. Its presence in Midtown could reshape pedestrian traffic patterns, draw new customer demographics, and act as a magnet for other high-profile retail brands.

While Extell now holds the full block, The New York Post report detailed the high-stakes drama that nearly derailed Barnett’s vision. The corner parcel at West 47th Street, now known as 576 Fifth Avenue, was originally controlled by a local partnership. In a surprise twist, Sae-A Trading Co. swooped in unexpectedly and purchased the property, demolished the existing 12-story diamond district building, but never filed development plans.