The deal is contingent on finding a tenant at $19.20 per sq.m. per month. The price of offices in the tower has dropped 15%.
Developers Harel Wiezel and Abraham Fuchs are negotiating a deal to buy one of the upper floors in the Moshe Aviv Tower (formerly City Gate Tower) in the Ramat Gan Diamond Exchange compound. The 1,440-sq.m. floor is being offered at $2,300 per sq.m., making the total price of the deal $3.3 million. The seller is apparently a company that bought offices in the building.
The two developers will go ahead with the deal only if the floor is leased at a minimum 10% return, meaning rent of $19.20 per sq.m. per month. The buyers' real estate agencies, Wiezel Real Estate and Trico-Fuchs, will broker the deal if it goes through.
The price being negotiated represents a 15% decline in the price of Moshe Aviv Tower offices, following the general market trend. Previous sales in the tower were conducted at $2,700 per sq.m.
Published by Israel's Business Arena on January 27, 2002