Ingka Centres, part of the Ingka Group and sister division to Ikea Retail and Ingka Investments, has acquired the 6X6 building in downtown San Francisco, and plans to redesign it into a new retail destination.
The development will be anchored by Ikea and complemented by mixed-use businesses suited for San Franciscans and their lifestyle. The company slated the Ikea store and first phase of redevelopment to open in fall 2021. The property comprises more than 375,000 square feet with the parking lot, and the investment including acquisition and future redevelopment is budgeted at $260 million.
The property will be Ingka Centres’ second mixed-use project in a downtown location. The company previously acquired Kings Mall in London’s Hammersmith earlier this year. The acquisition becomes Ingka Centres’ first in the United States, representing a milestone for the company, which in 2018 set a new strategic vision and investment of $8.6 billion in the business to transform as a response to the changing retail market. The company said it is evaluating opportunities in 40 major cities across Europe, Russia, North America, Asia and Oceania to introduce vibrant urban destinations. In the U.S., the company is actively targeting sites in New York City, Los Angeles and Chicago for similar projects. All anchored by Ikea stores, these urban projects will complement the company’s existing strategy, which involves opening smaller format stores within city centers in response to global urbanization trends, changing customer behavior and retail digitalization.
Gerard Groener, Ingka Centres general manager, said, “Our urban projects are all about getting closer to our customers. 6X6 is an impressive six-floor glass building with smart modern design and internal areas that provide the ideal canvas to create something truly spectacular. We believe Ingka Centres can transform the performance of well-located assets like 6X6 by aligning their offers to how people want to spend their time. We’re so excited about the potential that 6X6 building represents to Ingka Centres and local communities.”
Ikea Retail U.S. president Javier Quiñones added, “It’s an exciting time for Ikea Retail U.S. as we enter this next phase of our expansion into major U.S. cities. Globally, Ikea is evolving to be more convenient for customers wherever they are. We feel energized by the opportunity to bring a new, more accessible shopping experience to the many customers in San Francisco.”