Major Real Estate Deal Near Tel Aviv Sees 80 Apartments Sold for 198 Million Shekels

The real estate company Azorim Living has purchased 80 apartments in the Azor project located in the city of Azor, near Tel Aviv, for NIS 198 million. The deal involves 17 three-room apartments and 63 four-room apartments, with an average purchase price of approximately NIS 2.48 million per unit. This transaction is distinct from typical sales as all 80 apartments were acquired in a single bulk purchase by a company specializing in rental housing.

A significant aspect of the deal is the valuation gap: Azorim Living's external appraisal values the apartments at NIS 231 million, NIS 33 million higher than the purchase price. This difference is expected to be recorded as an accounting profit upon completion, before transaction costs. For the seller, Zvi Tzarfati and Sons, the sale is projected to yield a pre-tax profit of approximately NIS 47.2 million, averaging about NIS 590,000 per apartment. The company anticipates a net cash flow of around NIS 155.5 million after taxes from the sale.

Sixty of the 80 apartments are already leased, generating an estimated annual rental income of NIS 7.1 million, which represents a rental yield of approximately 3.6% relative to the purchase price. The Azor project consists of two 22-story residential towers with 280 apartments, and a third tower is planned for the future.

This acquisition brings Azorim Living's total purchases in 2026 to 247 apartments, valued at approximately NIS 613 million. The company had previously acquired 167 apartments for NIS 415 million through three other deals this year. Lawyers Shmuel Shov, Shoshi Birzon, and Lior Kil from Shov & Co. represented Azorim Living, while Tal Kenet and Idit Goral from Tal Kenet Law Firm advised Zvi Tzarfati and Sons.