Executive Summary
We are pleased to present this 5.5 Acre luxury Development project in the Old City of Tzfat.
Located on Rechov Keren Hayesod, next door to the Historic Dan Ruth Rimonim Tzfat Hotel, overlooking The Majestic and Mystical Mount Meron, across the street from Tzfat Estates and the famous Lelov Beis Medrash.
The site is currently vacant and is zoned for 15,000 sqm of Residential, Hotel and Commercial space.
Further to detailed discussions with the City of Safed, it’s politicians and planners, based on the prime central location, there is a unified will to significantly increase the
permitted density of the project.
From an investment perspective this will add value and offer the opportunity for a meaningful exit in the short term on rezoning approval.
Location Overview
Tzfat, Is a extremely sought out and captivating city renowned for rich history stunning vistas and mountain top locations.
The city’s demographics showcase a diverse blend of Jewish communities, each contributing to the city’s unique cultural tapestry.
Within close proximity to major urban centers, such as Haifa, Tel Aviv and Rosh Pina Airport, Tzfat enjoys the advantage of accessibility while maintaining a distinct identity.
This has played a pivotal role in attracting residents, businesses and tens of thousands tourists.
Tzfathas experienced remarkable growth in recent years, both in terms of population and urban development.
The population has reached an estimated 40,000 residents, representing growth of 81% in just 25 years, and the real estate market has responded with a mixture of preservation and modernization.
The Old City’s distinct architecture, characterized by stone buildings and narrow alleyways, has been carefully maintained to retain its historical charm, with a
surge in the restoration and renovation of properties to meet contemporary standards of comfort and aesthetics.
The demand for housing has led to a robust real estate market, with a range of options from quaint, centuries-old dwellings to lavish, modern, spacious apartments that offer breathtaking views of the surrounding landscapes.
There are also several notable luxury development projects currently underway, highlighting the role this city will play in the future of Israel’s growth.
As a destination for spiritual tourism Tzfat stands only second to Jerusalem.
Its young and diverse demographics (median age: 36 years), combined with careful urban development and a thriving real estate market, have fueled its growth as a cultural and economic hub in northern Israel.
As the city continues to evolve, it maintains its identity as a place where tradition
and innovation coexist harmoniously.
Financial analysis
DEAL INFORMATION
Property Acres 5.5
Residential SQM 6,063
Hotel SQM 8,509
Retail/Commercial SQM 562
Total Buildable SQM 15,134
RESIDENTIAL REZONED
Residential Buildings 8
Residential floors 7
Residential Units 150
Residential SQM 17,800
HOTEL REZONED
Hotel building 1
Hotel rooms 200
Hotel SQM 10,000
COMMERCIAL REZONED
Retail/Commercial SQM 2,162
Total Rezoned Buildable SQM 30,000
MINIMUM INVESTMENT
1,000,000 Shekel/$275,000 USD
RETURNS AFTER GETTING ALL ENTITLEMENSTS
PREFERED 10%
PROMOTE SPLIT 70/30
IRR 33%
EM RETURNS 2.3
2,300,000 Shekel/$632,500 USD
RETURNS AFTER BUILDING OUT PROJECT
PREFERED 10%
PROMOTE SPLIT 70/30
IRR 22%
EM RETURNS 3.97
3,970,000 Shekel/$1,091,750 USD
* Please note, in the scenario this project goes through to the development stage, then your investment will give you the benefit right of first refusal to purchase a Condo unit. Your initial investment of 1,000,000 shekel will potentially be worth 3,970,000 shekel at the end of development, which at today’s prices will cover the costs to buy a 100 Meter unit*.
*All prices are subject to change
More Info
Disclaimer
This Memorandum has been prepared to assist prospective investors in making their own preliminary evaluation and does not purport to contain all the information which a prospective investor may desire. In all cases, prospective candidates should conduct their own investigation and analysis of the Property and the data set forth in this Memorandum. Sponsor does not make any representation or warranty as to the accuracy or completeness of the information contained in this Memorandum or made available in connection with any further investigation of the Property, including estimates or forecasts, and neither shall have any liability for any representations, expressed or implied, contained in, or omitted from, this Memorandum or any other written or oral communications transmitted to the recipient in the course of the evaluation of the Property. The only information which will have any legal effect will be that specifically represented in a definitive agreement and the closing documents provided for therein. This Memorandum contains statements which constitute forward looking statements. These statements appear in a number of places in this Memorandum. Recipients are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may dier materially from those in the forward looking statements as a result of various factors. Only those representations and warranties made in a definitive, written agreement, and subject to such limitations and restrictions as may be specified therein, shall have any legal or binding effect. By accepting this Memorandum, the recipient agrees to keep confidential the information contained herein or made available in connection with any investigation of the project. Without limiting the foregoing, the recipient acknowledges and agrees that: (1) Sponsor will not be subject to any liability based on the information contained in the Memorandum, errors therein or omissions therefrom, whether or not Sponsor knew or should have known of any such errors or omissions, or was responsible for or participated in its inclusion in or omission from this Memorandum; (2) the recipient will not copy, reproduce or distribute to any third party this Memorandum, in whole or in part, other than with the prior written consent of Sponsor; and (3) any proposed actions by the recipient which are inconsistent in any manner with the foregoing will require the prior written consent of Sponsor. Sponsor reserves the right to negotiate with one or more prospective investor(s) at any time and to enter into a definitive agreement without notice to any other investor. Also, Sponsor reserves the right not to pursue the matters discussed herein and to terminate, at any time, further participation in the investigation and proposal process by any investor, and to modify data, documentation and other procedures without assigning any reason thereto.
