Migdal Armon in Haifa has turned from a ghost building into an attractive place

Reality Group purchased the "Palace" tower in Hadar in 2020 and turned it from a ghost building into a building that is almost 100% occupied. The group of Realty real estate funds includes improvement funds, a financing fund and yielding real estate funds in Germany. The group's goal is to realize the value of each investment for the investors and the environment in which the investment is located.

"Palace" tower

The "Armon" tower is located at 18 Hanaviyim St., corner of Shabtai Levy St. in Hadar. It was built on the ruins of the Palace Cinema, which opened in 1935 and operated until 1987. The owner of the cinema was Moshe Gridinger, who besides owning cinemas, also dealt in land and shipping.

The Palace cinema had 1,800 seats, bleachers and booths of honor. What made the cinema unique was that it had a convertible roof, which could be used during the summer. The Palace Cinema was destroyed in 1995 and then the construction of the tower began, which was completed in 1998. The Palace Tower has 18 floors, of which 3 are commercial floors and 15 are office floors. The building also has 6 floors of parking levels that include 430 parking spaces.

The secret of success - improving real estate

The property manager of the Reality Group, Erez Shema, tells how a building can be turned into a success story: "We purchased the tower in 2020 and recently the fund made a deal and sold 50% of the tower to the Reit Manibim fund. The main activity of the fund deals with improving real estate.

Behind Migdal Armon there is a special story that every old Haifai knows. In the past it was the Palace Cinema, and it was one of the leading cinemas in Haifa. We arrived at the tower after 20 years of not being able to occupy it, it was only 25% occupied. After several field studies, tests and getting to know the needs of the residents, we realized that the residents lack health insurance funds and daily services. With this plan we have made progress.

Today the property is full, 98% occupied, which is amazing. Migdal Armon was a white elephant, which no one wanted to approach. Thanks to our connections with the main players, Discount Bank, General and United Health Insurance Fund, Shiloh Dentistry and Maccabi Dent, the Government Housing Administration Office (government offices) that provide answers to the residents and the environment, we have renewed the building. We managed to get the building working again.

The common element for all those who rented space in the tower is providing a response to the residents. All of this could not have been accomplished without the impact department of Reality Group, which takes care of profit for everyone: a response to residents, to merchants who make a profit and to facilitate the authorities, local and national."

Not only commerce and services but also community and culture

"What is special about the building is that it has more than commercial spaces, a real community has been created in it. For example, exhibitions are held in the tower. One of the exhibitions was called the Palace Exhibition with photos of the mythological cinema and stories of Haifa veterans. We held several meetings where residents told how they used to spend time at the cinema. The veterans would come with their children to these meetings and it was very exciting.

Along with the exhibitions, in the last year we also created a nightlife. Nightlife is aimed at all ages: on Friday at noon ages 60+, Friday evening ages 21+, etc. Towards the summer we will start with more cultural events. Our goal is for them to both remember the property's past and enjoy what the tower now has to offer.

We are in negotiations for the last 3 remaining territories, and local players, who are mythological names in Haifa, will enter. Mayor Yona Yahav wants to make Haifa a leader in terms of cultural events and Migdal Armon plays a part in that. We are in open talks with the culture department in the Haifa municipality so that we can be partners in this."