It's no secret that "Tama 38," the national outline plan for the seismic strengthening of existing buildings, is coming to an end, and under a decision by the National Planning and Building Council is set to be terminated in October 2022. This is not an obituary for Tama, but rather an attempt to understand where the program that sought to improve older buildings is heading.
The problem is that even if we know that one program is coming to an end, we still don't know anything about what the next program will look like. Will it offer similar rights, more or less? It's all relative to what is offered today, of course. All the indications show that the follow-up program to Tama 38 will offer contractors fewer rights than what is offered today, which will hurt the profitability of projects and cause many investors to abandon the field.
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Today it's already clear there won't be a track that defines values for tenants. Meaning, it won't be possible to define value for tenants except for the addition of the reinforced security room ("mamad"), in the case of reconstruction or reinforcement of the structure.
It is precisely this approach of sitting on the fence until things become clear, as various tenants claim to be doing, that could mean missing out on a good opportunity to improve their living conditions and upgrade their apartment.
The main problem, as can be seen in the examples below, is that the solutions of luxury boutique buildings don't really address the issue of reinforcing housing in the Israeli periphery against earthquakes that occur along the Syrian-African Rift, but rather instead encourage the construction of prestigious new buildings to replace run-down buildings on the verge of collapse in expensive areas.
And so now the Planning Administration, which was just recently transferred to the Interior Ministry, is trying to resurrect Tama 38 with new legislation aimed at reinforcing buildings against earthquakes - as a replacement for Tama 38. In this case too, no solutions have been offered beyond the Dan Metro area, the Sharon area, and the satellite cities of Tel Aviv and Jerusalem.
The legislation currently being drafted includes reinforcement of buildings 2-5 stories high and construction of up to 10 stories high. There's also an upper threshold of 350% construction when the Evacuation and Reconstruction option is taken, and 250% when carrying out reinforcements and additions. It will also be possible to combine a mix of uses with commercial areas.
In recent years, more and more Tama 38/2 projects (demolition and reconstruction) have been completed and proved to be beneficial to all sides. However, tenants continue to hold out and wait for better opportunities.
It's worth noting that there have been numerous projects that stalled for years due to excessive demands from tenants, arguments between tenants, or tenants who refused to sign up to the project and thus blocked the advance of the scheme. The sense of the approaching deadline and that the last train is about to pull out of the station has expedited processes and led to compromise and advancement of projects in order to get on to the desired "green track" with the municipalities.
There is something misleading about the October 2022 deadline. It may seem that it means there are two years left until the program ends. But rather experience shows that about a year before the program ends, municipalities will likely stop the approvals process which determines which projects can go ahead and which can not. This means that projects that fail to approach the municipalities and get included in their work plan by October 2021 will most likely not be able to advance.
This puts more pressure on the market, because while a year and one month may sound like a long time, that's not the case when it comes to complex projects with many variables like Tama, which require agreements between the tenants, with the contractor, architectural design of the project and submitting it to the local authority. It's important to understand that the window of opportunity is short, and even shorter than what it seems to the unprofessional eye.
Tama 38 and the pandemic
The first pandemic lockdown during the months of March-May shocked the sector, when tenants were forced to make difficult decisions in conditions of uncertainty about the direction the market and economy were heading. All this led to a temporary freeze of the situation and feet-dragging in the advancement of projects.
After exiting the first lockdown and understanding that life with the virus will continue, the sector reopened. In addition, tenants realized that schedules set by the state to end Tama 38 are not working in their favor. There is much more openness on behalf of tenants to advance by communicating online.
"We recently reached agreements in two Tama projects using Zoom alone," says Eyal Sherifi, Director of Urban Renewal in Ewave Real Estate. "It emphasizes the willingness of tenants to move ahead when they trust the contractor, despite the social distancing and the restrictions that come with the pandemic.
"The municipalities can be divided into two groups. There are municipalities that despite the pandemic continue to provide service, continue to have Zoom meetings or devised digital tools that would ease the advancing of project approvals and dealing with difficulties. On the other hand, there are also municipalities where the pandemic caused a cessation of activity and more bottlenecks on the path for the desired approvals."
Not everyone sees Tama as the best solution. "Tama 38 is a crime for the tenants and the environment," says senior engineer Israel David, vice and interim chairman of the IACIE, the Israel Association for Construction and Infrastructure Engineers. "During an earthquake it probably won't help at all. The planning administration decided to cancel the program, but political pressures caused the former Finance Minister Moshe Kahlon to push back the cancellation by two years. I am already hearing that the activists are pressuring Interior Minister Aryeh Deri to keep the program going."
We surveyed projects before and after Tama 38. Perhaps they can serve as an example to the importance of finding a way to continue urban renewal.
Ramat Gan
Social housing and Tama 38
Yes, yes, even the mortgage company for social housing joined state-run Tama projects. The new Amidar company, the Israel National Housing Company, which is the operational arm of the Housing and Construction Ministry, is advancing a number of projects, including urban renewal on Yehoshafat St. in Ramat Gan.
This is a 38/2 Tama project, which will include demolition of the existing building and reconstructing a new one with 36 new apartments instead of the existing 12, where over half of them will be public housing.
The tenants will benefit from new apartments that are 12 sqm larger than the previous ones. They will also get a balcony, reinforced room, and underground parking.
The tenants will be relocated during the building, and the public housing tenants will be given continuous professional guidance, until their return to their new apartments.
The Housing and Construction Ministry is advancing through Amidar urban renewal in areas of demand using a social real estate model, where a large part of the profits will be diverted to reinvesting in public housing, especially in the periphery - both for apartment purchasing and for renovating and strengthening structures against earthquakes.
Amidar is currently advancing such urban renewal projects in Tel Aviv, Ramat Gan, Hod Hasharon, Holon, Raanana, and Jerusalem.
The project has been approved by the local council for planning and construction (with conditions). Milestone: obtained building permit. Forecast: Second half of 2021.
Rotshtein FIRST
As part of urban renewal (Tama 38/2), the Rotshtein company is building the Rotshtein FIRST project, situated in the desirable Rishonim neighborhood of Ramat Gan. The neighborhood is just a few minutes away from the entertainment, cultural and leisure centers of Tel Aviv.
The company is constructing a boutique building with 47 apartments, two wings with 23 and 24 apartments and 9 stories high. Each wing has a separate entrance, luxurious lobby and private elevator, and each wing has a tenant club room and shared underground parking.
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There are 10 apartments left for sale in the project: select boutique 4-5 room apartments starting at NIS 2,998,000, garden apartments and prestigious penthouses that are laid out over a whole floor with a balcony of 95 sqm, for sale from NIS 5,550,000.
The project is due to be completed by December 2021. Rotshtein were offering buyers a discount of NIS 100,000 over the holiday season, along with other select benefits.
Tel Aviv
The Bonim Ba'ir company, part of the Bonei Hatichon Group, is currently constructing a prestigious building under Tama 38/2 that is 8 stories high with 23 apartments in a desirable location in central Tel Aviv - Bloch St., near Rabin Square.
The sale includes 3, 4 and 5 room apartments, as well as garden apartments and a penthouse with a private swimming pool. The project is due to be completed two years after construction starts.
In the old north of Tel Aviv, in one of the most desirable neighborhoods in the city, and part of a Tama 38/2 project, the Gabay Group is constructing a unique project on Bodenheimer St. with 3 buildings of 8 stories and 88 apartments.
The sale includes apartments of 2 rooms and more, garden apartments and a mini penthouse, starting at NIS 2.95 million. The tenants will enjoy spacious apartments with high-end finishings, underground parking for every apartment and a very attractive location, just a few minutes' walk to the beach and Kikar Hamedina, the Yarkon Park and various entertainment centers. The project has a construction permit, and is due to be completed in 48 months.
The Metropolis company has recently begun a Tama 38/2 project on 49 Yehuda Maccabi in Tel Aviv. The old building, which was demolished a few weeks ago, was built in the 1940s and was 3 stories high with 15 apartments, no parking and no elevator.
The company began construction of a boutique building, 7 stories high with 29 apartments. The mix of apartments is diverse: 2-5 rooms, unique garden apartments, mini-penthouses with large balconies and Tel-Avivian penthouses with an urban view.
Prices start at NIS 3.99 million. The 15 original tenants will get new apartments that are 15sqm larger and a balcony of 12sqm, underground parking, storage rooms for some of the apartments, an entrance lobby, floor lobbies designed by professional designers and an elevator.
BST Investments of the BST Group in collaboration with Gordi and 4IG will construct under Tama 38/2 a 7-story high building with 24 apartments and underground parking at 22 Tsirelson St. in Tel Aviv.
This will replace the existing building, which has 12 apartments and an office. The apartment mix will include 3-4 room garden apartments, and 2-4 room apartments on the floors above. The price begins at NIS 50,000 per square meter.
Also under Tama 38/2 , the Levinstein Group will construct a 7-story building with 44 apartments over a parking lot, with parking for each apartment and a mix of 2-to-5 room apartments including unique penthouses of 5 rooms with two large balconies.
The project is located on 11-13 Antigonus St. in Tel Aviv, replacing the existing building of 4 stories and 26 apartments. Planning: Muhlbauer architects. Due to be completed in 3 years after relocation of existing tenants. Price: starting at NIS 3.5 million.
Under an evacuation and reconstruction project of 4 stories, the Aviv Urban company, with the Aviv Group, has purchased a building on 5 Hankin St. in Tel Aviv. As part of the urban renewal and evacuation and reconstruction is replacing it with an elegant building 8 stories high.
The new building includes a smaller number of unique 2-5 room apartments, garden apartments and roof apartments with a balcony facing the urban view of Tel Aviv.
The original building is 4 stories high, with two entrances, and has 15 apartments. It's on a quiet, one-way street near Kikar Hamedina. For a long time ,the building's location has been considered desirable and prestigious.
Price: 2 room apartment from NIS 3.9 million. Project architect: Guy Frank.
In 2015 the Aviv Group completed the Aviv in Florentine project, a living space of 3 buildings, where the central building is on the corners of Levontin, Harakevet and Mikveh Israel streets, and two additional buildings on 17-19 Mikveh Israel. The compound is on the northern corner of the Gan Hahashmal park, a few minutes' walk from Rothschild Blvd, Lev Tel Aviv and the light rail station that is currently under construction.
The project will have 132 boutique apartments (mostly small ones) fit for young and vibrant tenants, who want quality of life in the center of town, an urban lifestyle with a unique character and personal statement.
The original building on Levontin was situated on the corner of Levontin and Harakevet and was the home of the Phoenix company. The building had 5 stories above one commercial floor.
The new building will be 5 floors with 103 apartments, mostly 2-3 rooms, and a floor of penthouses, a commercial ground floor and three floors of underground parking. It is designed in the neo-Bauhaus style, in spirit of the White City, and its design is similar to the original one of the Phoenix house, with a rounded front that follows the contour of the street. The exterior cladding is made of plaster and wood.
The compound, designed by Bar Orian Architecture, took first prize in the 2015 Design Award for Living Spaces.
The Radco Urban Renewal company of the Rafaeli Group will soon demolish the building on 4-10 Te'enim St. in the Neveh Avivim neighborhood in Ramat Aviv and will replace it with two new and luxurious buildings as part of an urban renewal project.
The project is located in one of the most desirable places in north Tel Aviv. Instead of an old 4-story building there will be two modern 8-story buildings with 64 apartments and underground parking, with high quality and prestigious specifications. Four-room apartments are also available, garden apartments and penthouses worth a total of NIS 170 million.
In the Neveh Avivim neighborhood, all new buildings were constructed in accordance to Tama 38/1, reinforcements and additions to the existing building. This project, however, is one of the only ones in the neighborhood to be carried out as part of Tama 38/2, where the original building will be demolished.
It will be completed in January-February 2023. Price: 4 rooms from NIS 4,150,000, garden apartments from NIS 5,500,000, a penthouse from NIS 7,150,000. Architects: Orit, Ornat and Ruth Shapira.
Project: Tama 38/1 of the Avnei Derech Group will upgrade an old building, which was built in the 1960s, on Gonen St. in Tel Aviv in the Shikun Amami Gimmel neighborhood.
The existing building has 31 apartments over 4 stories and is in bad condition. It has no elevator, parking or balconies. After reinforcement 2.5 floors will be added. The new building will have 53 apartments, 17 of them 5 rooms, 5 roof apartments of 3, 4 and 5 rooms and a 7-room garden apartment.
Apartment owners will get new 4-5 room apartments with an extra room and reinforced room, 25 sqm balcony, elevator and underground parking. The underground parking is designed to have parking spaces for all the apartments. The project is due to be finished in 24-30 months.
Architect: Barak Zippor. Price: 5 room apartment, 113 sqm + 12 sqm balcony, 4-5 floors, from NIS 3,200,000.
The Ewave Real Estate company, active in the urban renewal field in Tel Aviv, is managing a project on 17 Congress St., located on the eastern and desirable side of Florentine, near Ha'aliya compound.
The building, which was recently completed, has been given rights according to Tama 38. The building was designed by esteemed architect Gidi Bar Orian, it includes 6 stories and has 36 apartments, including: 2 room apartments, 2.5 rooms, 3 garden apartments, 2 penthouses and a commercial unit in one of the most developing, young and interesting parts of the city.
The Itzik Tshuva Group (the nephew of Isaac Tshuva) has built a new building on Yehuda Halevi St. that replaces an office building from the 1950s. The old building was 4 stories high above a commercial floor with a total of 1,360 sqm.
The new 5 story building combines commerce and accommodation. A total of 17 apartments were built, including 2 mini-penthouses on the 4th floor, a penthouse on the 5th and 2 garden apartments in the back. On the front there is a 47sqm large store on the ground floor and 57sqm on the -1 floor.
Project architect: Gidi Bar Orian. The project was successfully marketed and was recently populated.
Ramat Hasharon
As part of a Tama 38/2 project, the Gabbay Group is constructing on the quiet Hamitnahalim St. in the Alon neighborhood in Ramat Hasharon a boutique building that is 7 stories high with 22 new apartments.
4 and 5 room apartments are for sale, as well as 3 and 4 room garden apartments starting at NIS 2.7 million. All apartments were designed with a prestigious and high-end finishings.
The location is next to commercial and public centers, green parks, quality schools and close to main transport arteries. Completion is due in 3 years.
The Ashdar Boutique company of the Ashtrom Group is constructing as part of a Tama 38/2 project a luxury building on the desirable Gideon St. in Ramat Hasharon with 41 spacious apartments with a high-quality finishings.
4 and 5 room apartments are for sale starting at NIS 3.406 million as well as garden apartments and a penthouse. The project is due to be completed in July 2021.
The Ashdar Boutique company of the Ashtrom Group is constructing as part of Tama 38/2 on the prestigious Bresheet St. in Ramat Hasharon, on the border with Herzliya, a luxury building with 7 stories and 24 apartments.
Special purchasing terms are available for buying 3, 4 and 5 room apartments beginning at NIS 2.62 million and also garden apartments and a luxurious penthouse from NIS 5.915 million. All the apartments are built with high-end finishings. The project is due to be completed by July 2022.
The Aviv Group and Aviv Urban are reconstructing a building that was built 47 years ago. The original building is from 1972, built by the Aviv Group, headed then by Moshe Aviv, the company founder. The building has 15 apartments on 3 floors.
The new building is being constructed by the Aviv Urban company, owned by Erez Aviv, the grandson of Moshe Aviv and the son of Doron Aviv, Chairman of the Aviv Group.
The building is being constructed opposite the green Gideon Park and has 8 floors with 28 apartments of large 5 rooms with large balconies, garden apartments, penthouses and 3 room apartments. The 5 room apartments are spread out over 131 sqm and the balconies are over 14 sqn. The design includes a luxurious lobby, two advanced elevators, a bike and baby-carriage room and two level underground parking with direct access to elevators. Price: 3 room apartments from NIS 2.7 million. Architect: Eyal Sandrovich
Kiryat Ono
The Ashdar Boutique company of the Ashtrom Group is constructing as part of a Tama 38/2 on the quiet Montefiore St. in Kiryat Ono a 5 story building with 26 apartments.
2-5 room apartments are being sold from NIS 2.01 million, and also unique luxury apartments like a mini penthouse from NIS 3.26 million, a loft from NIS 2.57 million and large luxury penthouses from NIS 4.97 million.
The project is due to be completed by June 2023. Montefiore 5 is part of a few buildings that Ashdar Boutique has constructed on the street and completed.
The renovation of the building on 8 Zeidman St. in Kiryat Ono as part of the urban renewal project (Tama 38/1) carried out by Grupin Entrepreneurship and Construction is full steam ahead. It's an 8 story building with 30 apartments.
The old building (5 stories with 20 apartments originally) is being revived with an addition of 3 floors and 10 new apartments, renovation of all the systems and infrastructure, new and spacious lobby and meticulous and up-to-date design (headed by architect Guy Cna'an, a partner in V5 Architects.
The tenants will get a building covered with natural stone, new and spacious lobby and completely new infrastructure. Each tenant will enjoy an addition of a reinforced room, balcony and 7 additional square meters to the apartment.
The contractor will get 10 apartments, 8 of them 5 room apartments (133 sqm + 19.6 sqm balcony) that include an granny / teen unit / work room, storage room and parking. Also, 2 large penthouses (158 sqm + 114 sqm balcony) with separate storage and two parking lots.
A 5 room apartment sells from NIS 2.9 million. Spacious 6 room penthouses with especially large balconies will start at NIS 4.32 million.
Rishon Letzion
A Tama 38 project will be constructed with an investment of NIS 80,000,000. It will consist of 4 buildings of 7 stories with 116 apartments in the Ganei Rishon neighborhood.
The project will be called the New Rishon Letzion, on Shrira Shmuel St. Contractor: Gilad contracting, marketing: Snir Company.
Pre-sale apartments are offered from NIS 1,400,000, garden apartments from NIS 1,480,000, 4 room apartments from NIS 1,630,000, 5 room apartments from NIS 2,390,000, 4 room penthouse from NIS 2,130,000, and 5 room penthouse from NIS 2,680,000.
The Yavnir company recently demolished a 2 story building on 21 Horovitz St. in Rishon, as part of a Tama 38 project, and will replace it with a 5 story building.
The building that was demolished was from the 1950s, with 2 stories and 4 apartments with no elevator. It will be replaced with a boutique building of 5 stories and only 12 apartments. The mix of apartments will be diverse and include 3 and 5 room apartments, mini penthouses and one single penthouse on the top floor. All tenants will get a new apartment 25sqm larger, including a reinforced room, a 14 sqm balcony, parking and 6sqm storage room and highly prestigious specifications.
A 5 room apartment will be offered from NIS 2,825,000, including a storage room and 2 parking spaces + upgraded premium specifications. The contractor is being represented by attorney Adam Cesswan and attorney Eliran Ben Shoshan from the Gindi-Caspi firm.
Bat Yam
The Tama 38/2 project (demolition and reconstruction) Gan Hanitsachon is located in the center of the city of Bat Yam on 11 Klausner St. The old 3 story building with a ground floor and just 9 apartments will be replaced with a building constructed by the Mizrahi and Sons Group with 10 floors and 29 apartments. All the apartments will be 4 rooms, including roof apartments and a garden apartment.
The area of the apartments will be 90-98 sqm, with a balcony of 10-12 sqm, and will be offered from NIS 2.18 million. The building will also have 2.5 floors underground parking.
The original tenants will be upgraded two floors or higher. For example, those who lived on the first floor of the original building will get an apartment on the third floor. Also, the original tenants will get a balcony, reinforced room, elevator, parking spot, lobby and of course a new and modern building. The project will be completed in two and a half years.
Jerusalem
The Tama 38/1 project on 6 Deedes St. in Jerusalem is being built in the prestigious German Colony neighborhood by the Manos Group.
As part of the project the 3 story building with 11 apartments will be reinforced. Another floor and a half will be built and 5 new apartments added. The new apartments include a penthouse with unique architectural design, offering a 360 degree view of the most beautiful part of Jerusalem and a balcony with infrastructure for a swimming pool.
Beyond the structure reinforcement against earthquakes, the existing apartments will be enlarged by 25sqm, a balcony and parking spot. There will also be a new elevator, luxurious lobby and staircase and additional parking spaces so that each apartment has a parking spot.
The project is designed by the architect office Michael Schwartz and Associates. Due to be completed by the beginning of 2021.
The Y.D. Barazani urban renewal company is constructing a Tama 38 project on 77-81 Herzog St.
Originally there were 3 buildings each with 4 stories, with 70 apartments and no elevator nor parking. The buildings will be added with an extra 2.5 floors above the existing ones. The original tenants will get a 25sqm addition, elevator to each entrance, enlargement of living room, front balcony, back balcony, new bathroom, luxury lobby, and 38 new joint parking spots.
The project is under construction. The financing body of the project is a company that finances and accompanies residential projects.
The Dara company is marketing a Tama 38/1 project on 1 Klein St. in the German Colony in Jerusalem, initiated by Di Veroli Siani.
The original building is an old building from the 1960s, with 4 floors and 24 apartments, no elevator or parking. According to the plan an additional 2.5 floors will be added and 14 apartments and an automatic parking device.
The skeletal work has been completed and the project should be finished in one and a half years. The project will have a diverse mix of apartments: 3, 4 and 5 rooms, garden apartments and roof apartments. The price: from NIS 3.4 million.
The original tenants will get larger new apartments with a reinforced room, balcony and parking spot. The old building will be reinforced against earthquakes and will be renovated, including the front of the building, adding of the extra reinforced room, automatic parking devices and elevators.
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