A rendering of 9-19 Ninth Ave. in Manhattan, where Restoration Hardware will open a store. The retailer is paying about $250 million over the course of a 15-year lease. Moso Studio

A Meatpacking District building that has been home over the decades to stables, a restaurant, a parking garage and a market is being redeveloped as a Restoration Hardware store, according to people familiar with the deal.

Restoration Hardware Holdings Inc., the high-end home-furnishings retailer, has signed a 15-year lease and will pay about $250 million over the term of the lease to take the building at 9-19 Ninth Ave., according to one of the persons with knowledge of the deal.

A joint venture of Aurora Capital Associates and William Gottlieb Real Estate owns the building. The firms are renovating and expanding the two-story structure with three additional floors, creating about 70,000 square feet of space.

The Meatpacking District was once a place where only designers opened stores, but over the years the mix of shops has become much more eclectic, said Jeffrey Roseman, executive vice president of Newmark Grubb Knight Frank, a real-estate services firm that wasn’t involved in the deal.

The neighborhood is on the map for retailers world-wide, driven by factors including the popular High Line park, the area’s night life, increased office density and high-end residential projects, Mr. Roseman said. The opening of the downtown location of the Whitney Museum of American Art “will be the cherry on top,” he said.

The building at 9-19 Ninth Ave. offers Restoration Hardware a branding opportunity to stand apart, not so easy elsewhere in Manhattan, said Kelly Gedinsky, a retail broker with Winick Realty Group LLC, which wasn’t involved in the deal.

“There aren’t many tall buildings there, so they aren’t going to be out-positioned by some huge office tower,” she said.

In June, the Landmarks Preservation Commission approved plans for an addition to 9-19 Ninth Ave., which sits in the Gansevoort Market Historic District.

The structure has a jumbled history of changing uses and additions, said Harry Kendall, a partner at BKSK Architects LLP, which worked with lead firm Wormser + Associates Architects on redevelopment designs. During the 19th century, it housed stables in its northern end and had an open market on the south side, Mr. Kendall said. Later, it was expanded, with a parking garage on the second floor and shops below.

“We treasure that oddity and messiness and what the landmarks commissioners referred to as grittiness,” said George Schieferdecker, also a partner at BKSK.

The plans for the building, which the architects said weren’t designed for a specific tenant, call for a metal and glass exterior screen. These metal sections, which frame textured glass, allude to the signs, canopies and fire escapes that once hung off buildings in the neighborhood, the architects said.

Once the construction is completed, the building will have a large outdoor space on the fifth floor and a wraparound terrace on the third floor.

Keith McNally’s French bistro Pastis, which closed earlier this year, had been a mainstay at the building for years. It was unclear whether the restaurant would reopen and, if so, where. The restaurateur didn’t immediately respond to requests for comment.

Mark Masinter, a managing member of Open Realty Advisors, represented Restoration Hardware in the lease. Bobby Cayre, founding partner of Aurora Capital Associates, and Jared Epstein, vice president and principal of Aurora, represented the partnership of owners.

Restoration Hardware has different store types, the largest of which is its full-line design gallery format, which average 21,600 square feet, according to the company’s annual report. Products in the company’s stores are presented in fully furnished display rooms.The company is in the process of introducing larger gallery stores ranging from 25,000 to 60,000 square feet, the report said.