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NY Investor Buys 80,000-SF Bank Building

TEL AVIV-Victor Schlesinger acquires the First International Bank building on Rothschild Boulevard here with plans to either rehab the office space or convert it for residential use.

By Brian K. Miller | Updated on July 13, 2005

TEL AVIV-The 80,000-sf First International Bank Building here has been acquired by New York-based investor Victor Schlesinger. The purchase price was $10 million. The seller was First International Bank.The eight-story concrete and steel building is located at 38 Rothschild Blvd. in one of the city’s shopping and dining districts. Rothschild Boulevard is one of the city’s busiest thoroughfares. The bank, which still occupies the building, will vacate in the coming weeks in favor of another location. Abe Gross of CBRE’s Long Island City office, represented the buyer with the assistance of his Tel Aviv counterpart Stanley Behrman. Gross tells GlobeSt.com that he initially contacted the Tel Aviv office with the hope of attracting Israeli buyers for New York real estate, but things ultimately went in the opposite direction.Schlesinger is in the midst of feasibility studies to determine whether it’s in his best interest to keep the building’s use as office space, albeit a higher grade of office, or convert it for residential use. Vacancy in the Tel Aviv office market is in the single digits, Gross says, and the rent that could be had from a renovated older building like the First National Bank building is in the high $20s per sf per year. Given those numbers, Gross says Schlesinger is leaning toward upgrading the office space and expecting a 15% cash-on-cash return.

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