Sprinkles Cupcakes is getting into the ice cream business.

Broadening its line of sugary offerings beyond cupcakes, the company is opening a 1,000-square-foot ice cream parlor that will adjoin its Upper East Side shop at 780 Lexington Ave.

The exterior of the new space will be equipped with Sprinkles' latest innovation in the cupcake business—an ATM machine that allows customers to order from the shop’s assortment of cupcakes, which come in flavors like banana, triple cinnamon and ginger lemon, 24 hours a day.

"Sprinkles is both a destination for sweet lovers and an impulse indulgence that appeals to office workers, neighborhood residents, and tourists," said Peter Braus, a principal at Lee & Associates who arranged the deal. "So we like to find locations with high visibility and accessibility to all three demographics."

The expansion, which is located at 782 Lexington Ave., at the corner of East 61st Street, will bring Sprinkles up to about 7,000 square feet, consisting of its new and existing space at 780 Lexington Ave. Sprinkles opened at 780 Lexington Ave., a four-story building, in 2011. The tenant uses the second floor as an event space and the third and fourth floors serve as corporate apartments to house Sprinkles executives when they are visiting the city, Mr. Braus said.

The company is expanding across the city. It was one of several tenants who will operate in a new food court being built at Brookfield Place, the large downtown office complex adjacent to the World Trade Center.

Mr. Braus represented Sprinkles in the deal with colleague Peter Levitan. Mr. Braus, in partnership with colleague Garry Steinberg, represented the landlord, Samuro Partnership, which owns both 780 and 782 Lexington Ave. The asking rent was $400 per square foot.