The compound on Beit Tzuri and Aba Ahimeir streets in Ramat Aviv Gimel, next to the Schuster Center, has completed its residents’ tender and chosen a developer to advance a pinui binui (evacuate and rebuild) scheme replacing 128 older apartments with about 250 new ones. Apartment owners in the neighborhood ask us often what actually happens after a stage like this, so we have set out the full picture here.
What is settled and what is still open
A residents’ tender is the process in which the apartment owners, advised by their own lawyers, appraiser and supervising engineer, choose the developer who will advance the project. A choice like that settles the identity of the developer and the basic framework of the compensation.
What is not yet settled is the individual agreement with each owner, the detailed plan to be filed with the municipality, any objections, the building permit and the real timetable. In comparable compounds in north Tel Aviv, the road from choosing a developer to the start of demolition usually runs to several good years.
How it affects the value of your apartment today
An apartment in a building inside a compound with a selected developer trades differently from an identical apartment in a building outside the compound. The buyer is no longer buying only the existing apartment, but also the future right, and the uncertainty that comes with it.
The practical implication: pricing against an average price per sqm for the neighborhood is not relevant here. Pricing has to follow transactions in buildings at a similar planning stage, with knowledge of the exact status of the compound. The reverse is true as well: anyone selling an apartment in a compound that has not yet organized should know what is happening on the very next street.
Questions worth asking before buying or selling here
What stage the compound has reached, and who represents the residents. Whether agreements have already been signed, and at what percentage. Whether a plan has been filed and where it stands in committee. What compensation has been offered, and how it translates into value today.
These are exactly the things we check for clients before a deal in Ramat Aviv Gimel. You can begin with an initial valuation and move on to a conversation about the specific planning position of the building.
Courtesy of TLV Online · read the original article
This review is part of Market Reviews and Real Estate Opportunities by RS Nadlan.
