Israeli Businessman Yakir Gabay Seeks $400 Million for Yellowstone US Real Estate Venture

Israeli businessman Yakir Gabay, founder of the real estate giant Aroundtown, is expanding his North American presence through his controlled partnership, Yellowstone. The company is reportedly raising approximately $400 million in a private pre-IPO funding round, valuing the firm at over $1 billion. Yellowstone, established in 2019, includes major Israeli institutional investors such as Clal Insurance, The Phoenix, and Meitav Dash Investments, who are expected to inject more capital to maintain their stakes.

The company, managed by Tzachi Harah, specializes in acquiring distressed properties, particularly office buildings and hotels in New York City, with the aim of converting them into residential units. This strategy is supported by regulatory easing from the New York City government. Yellowstone currently owns four strategic Manhattan properties valued at around $1 billion, including stakes in buildings slated for conversion into rental apartments and luxury residences near Times Square and on Broadway.

Yellowstone's equity stands at $853.7 million, with its real estate portfolio valued at approximately $1 billion. This follows a recent debt raise of 600 million shekels in Tel Aviv. Beyond New York, the company has provided loans for projects in San Francisco and Canada and is exploring further investments in the US, including a multifamily project near Miami.

The new funds will be used to capitalize on opportunities in New York's hotel market and the broader US residential market. In a strategic move, Yellowstone has exercised an option to sell its stake in the "River District" project to partners Adam Neumann and Canada Global for its initial investment plus a 20% return, a deal expected to close by November. This move resulted in an $18 million loss for the first half of 2026, alongside other financial write-downs and reduced net operating income from Manhattan properties.