Rubinstein Sheltered Housing Properties, owned by the Rubinsteins, a family of contractors, won an Israel Land Administration tender last Monday for an 18 dunam (4.5 acre) compound in the Ramat Beit Hakerem neighborhood of Jerusalem. Rubinstein will pay $17.5 million, including development costs. The compound is zoned for the construction of 100 sheltered apartments, 80 ordinary apartments, and a 10,500 sq.m. commercial center. The sales proceeds are estimated at $68 million.
Rubinstein Sheltered Housing Properties is owned in equal shares by Irma Rubinstein, Rami and Ora Rubinstein, and Gil Rubinstein. As far as is known, this is the first time that Gil has joined one of the family's major real estate projects. He is not a shareholder in Avraham Rubinstein & Co. Building, the family's main real estate company.
13 developers participated in the hotly contested tender. The second place bid was $14.45 million, and the third place bid was $14 million. The minimum price (including development) set by the State Assessor was $10.35 million.
The assessor who examined the project estimates it will earn $68 million in sales, based on the following breakdown: 100 two-room sheltered apartments at $150,000 each; 64 five-room apartments at an average of $320,000 each; 16, 130-sq.m. main area penthouses at $380,000 each; and $2,500 per sq.m. in the commercial center.
The project calls for the construction of nine apartment buildings. Rubinstein Sheltered Housing Properties will probably ask for a permit to build at least 100 sheltered apartments. He is not expected to have a problem obtaining the approval, since the Municipal Building Plan calls for 15,000 sq.m. of residential, sheltered housing or office space. It is improbable that office space will be built, considering the location and current market for office space. Rami and Irma Rubinstein own the Ahuzat Rishonim Rubinstein sheltered housing project in West Rishon Le-Zion.
Published by Israel's Business Arena on 30 September 2001