Ingka Centres has recently acquired the “6X6” building in downtown San Francisco from MSP Property LLP, a company controlled and owned by Alexandria Real Estate Equities Inc. and TMG Partners. The company intends to convert and redesign the building located at 945 Market Street into a new retail center, anchored by IKEA and complemented by mixed-use offerings that are well suited to San Franciscans and their lifestyle. The property is comprised of more than 35,000 sq m, including the building’s parking lot. The gross leasable area amounts to approximately 24,000 sq m. The IKEA store and the first phase of redevelopment are slated to open in fall 2021. The acquisition is the first of Ingka Centres in the USA. It represents a milestone for the company, which, in 2018, announced its new strategic vision as well as investments of €7.3 billion aimed at transforming its business in response to the changing retail environment.
Gerard Groener, General Manager of Ingka Centres, said: “Our urban projects are all about getting closer to our customers. ‘6X6’ is an impressive 6-story glass building with modern, intelligent design and interiors that provide the ideal canvas to create something truly spectacular. We can transform the performance of well-located assets like ‘6X6’ by aligning their offers with how people want to spend their time..” Groener is due to formally step down in February 2021. He will be succeeded by Cindy Andersen.
‘6X6’ will be Ingka Centres’ second mixed-use project in a downtown location, following the company’s acquisition of Kings Mall in London’s Hammersmith earlier this year. The company is evaluating opportunities within 40 major cities across Europe, Russia, North America, Asia, and Oceania to introduce their vibrant, urban destinations. In the USA, the company is actively targeting sites for similar projects in New York City, Los Angeles, and Chicago. All anchored by IKEA stores, these urban projects are designed to complement the IKEA Retail U.S. strategy of opening smaller format stores within city centers in response to global urbanization trends, changing customer behavior, and the digitalization of retail.
People and Planet Positive Strategy
Ingka Centres’ redevelopment plans for “6X6” will be driven by the needs of the local community. The company will work closely with tenants and partners to create a place people want to visit long into the future. The property will also be redesigned around the IKEA People and Planet Positive strategy, which will make the building more sustainable and promote sustainable living for the many. Ingka Centres intends to promote recycling, greener spaces, and improved air quality, among other initiatives, at “6X6”.