A huge penthouse is up for sale in The Jaffa Hotel near the flea market. Real estate tycoon Aby Rosen is asking $65 million for the penthouse, making it one of the most expensive properties in Israel.
The penthouse is very spacious. The living area alone extends over 1,500 square meters and is fully furnished with huge windows looking out over ancient Jaffa and the Mediterranean.
Upstairs are five bedrooms, a spacious shared area, small fitness room, large open kitchen alongside a smaller and enclosed one, amazingly designed bathrooms and smart home electronics systems.
The walk-in closet in the master bedroom is so large it would be possible to live in it. And that's not all - the walls in the share living space of the penthouse are modular and can be moved to adjust the area. For example for closing off a work area, or opening things up for spaciousness. There is an additional 1,000 square meter roof garden with a breathtaking view of Jaffa Port. The buyer will enjoy the hotel's services including parking, the swimming pool and maintenance staff as required.
The penthouse was designed by renowned Israeli architect Pitsou Kedem, who specializes in high-end residences. Kedem was given a blank check in designing the penthouse and told that no expense should be spared.
The penthouse has already been on the market for two years and over the past six months has been turned over to Israel Sotheby's International Realty. In efforts to find a buyer, any external real estate agent or lawyer that makes a successful connection would earn a 1% commission, while Sotheby's is entitled to a 2% commission in the value of any sale.
"There are Israeli clients that are interested
Israel Sotheby's International Realty marketing director Itay Gurevich told "Globes," "The clients interested in these properties recently, including this penthouse, are actually Israelis. I cannot give out names but we have had two clients interested over the past month including the owner of a very large fashion chain and the second was a well-known businessperson. Before the Covid pandemic, target clients were mainly foreign residents, but now things have changed and half of the demand is from foreign residents and half from Israelis.
"Following the development of Israeli high-tech, there are no few tech entrepreneurs who have completed handsome exits and become our clients. We are now dealing with several clients aged about 30 who have large sums of money and are looking for apartments for about NIS 40-50 million. They are asking for 200-300 square meters in the heart of Tel Aviv with a roof. There are also many returning residents (Israelis coming back from living abroad) bringing lots of money with them."
Marketing of high-end homes targets a very small clientele. Gurevich says, "It's not something that you put in a newspaper ad for customers who are waiting in line to buy. That's not for this property. Marketing is international, distributed through Sotheby's branches worldwide, via public relations abroad, focused contacts with clients and distributing confidential lists containing a limited list of clients."
How do you set the price at $65 million
"The price is set by appraisers as well as the property owner. In this specific instance the value of the property is not only about square meters but also the investment in design, and there is a very well-known designer and architect. Also taken into account are the investment in furnishings with the penthouse furnished down to details like the knives and forks and espresso machine. There is also extra for the uniqueness of the property, because we are not talking about just another apartment but something straddling the border between real estate and art."
Wouldn't it be easier to sell an apartment without furniture?
"It depends. There are clients for furnished apartments and there are clients looking to enter and design according to their taste. In this penthouse, we are talking about the world famous Pitsou Kedem and there are people looking for his designs that like his clean lines. Instead of coming along and designing from scratch, they can simply move in and live there. There are also clients who collect properties and are looking to for creations by interior designers and architects to add to their collection. So here we are seeking the right client who has a budget, hits on their taste and desire to live in Jaffa or come here on vacation, and there are those too."
When you find the buyer - how will they pay?
Some of the clients with a mortgage or loan because that pays more in business terms and some simply transfer the sum through a bank transfer. For the most part, it is conducted by trustees and lawyers, so part of the sum is deposited until the deal is finally closed and everything is approved."
Published by Globes, Israel business news - en.globes.co.il - on August 10 2022.
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