One of Tel Aviv’s most prominent redevelopment schemes advanced this week after the local planning and building subcommittee approved a new residential complex for Nof Gad and Tidhar in the Daphne Street evacuation-and-reconstruction district. The project, in Area 501 near Ichilov Hospital, will replace six old railway-style buildings and add a 34-story tower, a new neighborhood community center, and other residential buildings.
The wider renewal plan, split into six subareas numbered 501 through 506, has been moving slowly for years despite its prime location near public transit and high-demand neighborhoods. The site was first declared an evacuation-and-reconstruction area in December 2008, and the Tel Aviv district planning committee approved the plan in 2015. The overall project, located in the Daphne, Arlozorov and Namir streets triangle, calls for demolishing 21 aging 1950s railway buildings with about 450 apartments and replacing them with six new towers.
According to the approved plan, the full complex will eventually include 1,434 new apartments, a net addition of nearly 1,000 homes. In Area 501 specifically, the old four-story blocks with 128 apartments will be replaced by the 34-story tower, lower-rise buildings of eight and nine stories, and a total of 391 new units. The project will also include 54 affordable rental apartments and a four-level underground parking garage with about 500 spaces.
The approval marks the second stage in advancing the entire renewal district. Construction in nearby Area 505 began in March 2025, also led by Tidhar and Nof Gad, and is planned to deliver 231 apartments in a 29-story tower and a six-story building. Another area, 502, has been mired in legal disputes between the developers and residents. That section, which currently has 66 apartments in three old railway buildings, is planned for a 201-unit tower. The planning process there began in 2006, Nof Gad was chosen by residents, Tidhar joined as a partner in 2019, and the companies later said disagreements, multiple lawyers and changes in representation slowed progress and even led them to seek an arbitrator. A 2021 “holdout resident” lawsuit was later dismissed by the district court, and last year the companies filed a NIS 60 million damages claim against residents and the new developer, Adam Schuster.
