Danbar, controlled by Yaacov Engel, sold a new 3,300 sq.m. building at 4 Bareket St., Kiryat Matalon, Petach Tikva to a group of developers headed by Amos Alon and Yitzhak Yosef, for $3.5 million. The deal was brokered by Reshef Properties Industry and High-Tech division manager Yossi Mashiach.
The six-story building has a total of 1,900 sq.m., with a 1,400 sq.m. parking lot in two sub-basements. The building was sold in shell condition. The office space and parking spaces are valued at NIS 1,375 per sq.m. and NIS 385, respectively. The prices are average for recent deals in the area. The price was not discounted compared to earlier deals, even though it a major deal for an entire building.
The purchasing group is financing most of the acquisition through a $2.2 million loan from Bank Mishkan, which is financing 70% of the deal at the usual terms.
The Alon-Yosef group, in which Merav Shapira, is in advanced negotiations to lease the whole building to a vehicle and tourism company for $350,000 per year, index-linked, which will give the owners an 11% yield. Reshef Properties arranged the group of buyers and is also brokering the lease contract.
Danbar originally paid $575,000 for the plot, at $740,000 per dunam (0.25 acre). Plot prices in the area have significantly risen in the past year, and are currently estimated at $850,000-900,000 per dunam.
Published by Israel's Business Arena on 14 January 2001