On the bustling shopping strip of Fifth Avenue in New York City sits something you might not expect to find: an empty lot.

But it won’t stay empty for long. The development site at 570 Fifth Avenue, between 46th and 47th Streets, is slated to become a 33-story office tower, anchored by an 80,000-square-foot IKEA store at its base, according to the developer, Extell Development.

Ingka Investments, the real estate arm of Ingka Holding, the world’s largest IKEA franchisee, injected “approximately $400 million” into the overall project, said Extell’s founder and chairman, Gary Barnett. In exchange, Ingka scored a one-third stake in the building and ownership of its retail space.

“Having Ingka come in has been very helpful for us,” Mr. Barnett said. “They’ve injected a very substantial amount of equity. They’ve become our partner in the actual overall office deal, as well as purchasing their retail space.”

Ingka’s investment let Extell move forward with its office building, more than a decade after it first started buying up parcels for the development site, Mr. Barnett said. And it let Ingka secure a coveted slice of Fifth Avenue while keeping its popular furniture affordable.

“We can safeguard long-term stability for IKEA, keep overhead costs more predictable and maintain our commitment to providing accessible products,” said Jenna Grader, a portfolio manager at Ingka Investments.