The Swedish furniture giant has purchased the six-story commercial building at 529 Broadway for $213 million from Wharton Properties, owned by Jeff Sutton, according to property records. Ingka Group, which operates most IKEA stores globally, plans to open a 25,000-square-foot location across the first two floors, a smaller-format store aimed at urban shoppers. The upper floors will be converted into offices managed by Ingka.

The property, currently leased to Nike, spans 58,000 square feet and sits at the corner of Broadway and Spring Street. Designed by BKSK Architects to echo a 19th-century hotel, the building was acquired by Sutton for $146.9 million in 2013. The ...