Mider-Profado, controlled by Ze’ev Greenberg, Yechiel Porush and Doron Schneider, signed a land-combination deal on Monday in eastern Tel Aviv’s Nahalat Yitzhak neighborhood. The company plans to clear an old compound now used for garages and aging buildings and replace it with a residential tower of about 20 stories, plus street-level commercial space.
The project is planned on a plot of about 1.7 dunams and is expected to generate roughly NIS 380 million in revenue, including VAT. Under the agreement, the landowners will remain substantial partners in the venture and receive 52% of the building rights, while Mider-Profado will hold 48%.
The company said the deal reflects growing demand for mixed-use projects in central high-demand areas, especially older neighborhoods where available land is becoming scarce. Mider-Profado said the combination model lets landowners benefit from the site’s appreciation without selling the property, while enabling new planning in an area undergoing rapid change.
Nahalat Yitzhak is considered one of the more sought-after neighborhoods in eastern Tel Aviv, partly because it sits between central Tel Aviv and Givatayim and near major employment hubs. Nearby areas include the northern business district, Azrieli and Midtown towers, Sarona, Yigal Alon, TOHA, Givatayim’s city center and Beyond. The company expects this connectivity, limited land supply and ongoing renewal to keep boosting the neighborhood’s appeal. Baron & Co. is providing legal support, Alr/Arch Architects is handling design, and attorney Elad Shulman of Lipa Meir represents the landowners.
The new deal adds to other projects Mider-Profado is advancing. Earlier this year it signed another Tel Aviv combination deal in the Montefiore neighborhood, where it plans a tower of about 30 stories with about 65 apartments plus hotel, retail and office uses. In Jerusalem, the company is promoting a large plan in Armon HaNatziv that was approved for deposit last week, involving demolition of 179 old apartments and construction of about 900 new units in six towers of up to 36 stories, along with about 2,000 square meters of commercial space. Greenberg said Nahalat Yitzhak shows the transformation taking place in old urban areas and noted, “The combination of a strategic location in the heart of the Tel Aviv metropolis and a neighborhood, community character creates extraordinary potential for quality renewal.”
