Imagine a towering addition to Manhattan's iconic skyline that combines luxury offices, a massive IKEA store, and even a gym—all in one skyscraper. But here's where it gets controversial: is this the future of urban development, or just another example of overbuilding in an already crowded city?
The 24th tallest project on our year-end construction countdown, 570 Fifth Avenue, is a 567-foot-tall commercial skyscraper poised to transform the eastern edge of Midtown Manhattan's Diamond District. Designed by the renowned firm Kohn Pedersen Fox (KPF) and developed by Extell, this 32-story behemoth will offer nearly 1.1 million square feet of space, primarily dedicated to Class A office environments. But it’s not just about workspaces—the project also includes retail areas on the first two floors, an 80,000-square-foot IKEA flagship store in the cellar levels, and a suite of amenities like a gym, swimming pool, basketball court, and juice bar below ground. Talk about a one-stop destination!
Excavation has been steadily progressing below street level since our last update in early November, with a fleet of machinery operating within the confines of temporary wooden retaining walls. Crews have also completed the demolition of the final structure at 15 West 46th Street, clearing the way for the skyscraper’s expansive footprint between West 46th and 47th Streets.
The building’s design is both striking and functional. The podium spans the entire block, reflecting an updated scheme that incorporates the $175 million addition of 576 Fifth Avenue. Above a landscaped wraparound terrace, the tower rises with a uniform silhouette, punctuated by two midpoint setbacks on its eastern and western sides. The façade features a sleek glass curtain wall accented with light bronze mullions, culminating in a crown adorned with a denser arrangement of metal spandrels. A curious square gap in the southeast corner of the crown hints at potential signage for the anchor tenant—a detail that’s already sparking speculation.
And this is the part most people miss: IKEA franchisee Ingka Group has acquired a one-third stake in the project, valued between $300 million and $500 million, to house its massive retail store. Meanwhile, Extell secured $340 million in refinancing, including $9.3 million in new debt from South Korea’s IGIS Asset Management. Adding to the buzz, law firm Simpson Thacher & Bartlett announced plans to lease roughly 700,000 square feet, though it’s unclear if this marks a full relocation from their current Lexington Avenue offices.
Located just steps from the B, D, F, and M trains at the 47th Street–Rockefeller Center station, 570 Fifth Avenue is slated for completion in the fourth quarter of 2028. But as we marvel at its scale and ambition, it’s worth asking: Does this project truly meet the needs of New Yorkers, or is it a symbol of excess in an era of housing shortages and urban inequality? Let us know your thoughts in the comments—we’re eager to hear your take on this transformative development!
