Sofrin, Weiss, and Orkom Sell Jerusalem Offices for $22 Million

The Sofrin Group, in partnership with Weiss and Orkom Real Estate, has finalized an agreement to sell approximately 4,657 square meters of office space in the "Matam HaTzefa" project, located in Jerusalem's Talpiot industrial zone. The sale price is approximately 82.1 million shekels (about $22 million USD), plus VAT. The transaction includes 2.5 floors of offices, 49 parking spaces, and storage areas, with the buyer intending to use the spaces for their own needs.

This sale is expected to bring the occupancy rate of office spaces in the project to about 69%. The "Matam HaTzefa" project, currently nearing completion and prior to occupancy, is in its third phase. This deal represents a further realization of assets for Sofrin and its partners, occurring at a time when Israel's office market faces oversupply in some areas, though new buildings in prime locations continue to attract demand.

The "Matam HaTzefa" project encompasses about 57,000 square meters of commercial and employment space. The first phase, comprising 20,000 square meters of retail and offices, was built under a "buyer group" structure managed by Sofrin and Orkom. Phases two and three involve a 20-story office tower with approximately 36,000 square meters and over 700 underground parking spaces.

Talpiot itself is undergoing significant transformation, evolving from a traditional industrial and commercial area into an urban district integrating residential, commercial, and employment functions, supported by new projects and transportation infrastructure development. The proceeds from this sale are anticipated to cover most of the remaining bank debt for the project, reducing the project's financing burden and strengthening the company's capital structure and liquidity, according to Sofrin CEO Leon Sofrin.

This Jerusalem sale follows another recent transaction where Sofrin and its partners sold their leasehold rights on a 29-dunam (approximately 7.2 acres) plot in the Nesher industrial zone for about 113 million shekels plus VAT. This land previously housed an IDF fuel depot. These two deals together signify a strategy of asset realization and debt reduction, alongside continued development activities.