Wednesday, March 5, 2008

Squares in a round hole

Around the world there are squares and plazas that have become national symbols - Beijing's Tiananmen Square and Moscow's Red Square - while others are must-see places on any visit to their cities: Trafalgar Square in London and Piazza Navona in Rome. In Israel, however, despite a few modest successes here and there, it is hard to point out such sites.

In recent years many local developers - some by choice and others not - have built plazas near the projects they have completed. In most cases the results are a failure. One such example is the plaza at the entrance to the Pelephone building in Givatayim: anyone who does not have business in the building will never go there.

Architect Eran Tamir-Tawil, who writes a Hebrew blog on the arsitectura site, claims that that particular plaza may not even be a real square, as it is just open space in front of the building, and not an active square. It is above a parking lot, has hardly any landscaping or greenery, no public functions and no real life of its own.
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"Building percentage restrictions and the desire to gain extra space," says Tamir-Tawil, "lead [planners] to play games with levels and a series of ramps, like at the plaza beside Beit Asia in Tel Aviv, which is a missed opportunity.

"The reason squares (kikar in Hebrew) in Israel are less prominent and impressive than abroad," continues Tamir-Tawil, "is the distance between houses in Israeli cities.

"In Israel, unlike Europe, there is space between all the buildings, so we don't need a square to achieve perspectives of open space. When cities are crowded, as they are in Europe, the square stands in dramatic contrast to the closedness around it."

In Israel the "square" concept is over used, even when the space in question does not fit the description. Very few squares in Israel fulfill their urban purpose successfully, and there are plenty of examples of failures.

Kikar Atarim is a case in point. It is not frequented as a meeting place and is an uninviting spot in the heart of Tel Aviv.

Tamir-Tawil believes that Kikar Atarim suffers from the same problem as Place de la Bonne Heure, on the border of Tel Aviv-Jaffa.

"The architects who designed them never intended to create a square," explains Tamir-Tawil, "but rather to find a solution for the parking lot - and therefore did not succeed in making a successful square." Place de la Bonne Heure, beside the Dan Panorama hotel, should have been part of a series of raised plazas, above parking lots, that were planned as the heart of the main urban center in the Menashiya neighborhood. The square was designed by architects Amnon Niv, Amnon Schwartz and Danny Schwartz. Despite its poetic name, Place de la Bonne Heure is a lifeless, inaccessible site. There is a good chance that you have passed it on several occasions and never known you were there.

Tamir-Tawil thinks the problem with Kikar Atarim and Place de la Bonne Heure is similar to that of Kikar Dizengoff, also in Tel Aviv.

"With all three of them, the traffic solution was more important and the square is only part of the total plan. During that period, the 1960s and 1970s, architects believed it was possible to raise the level of the street to the fourth floor and that human activity would manage to bridge the gap. They thought that passersby would make the effort. This optimism and naivete did not prove true, and this problem is not unique to Israel. This assumption was prevalent elsewhere, and there, too, proved incorrect."

Kikar Dizengoff in its current incarnation was planned by architect Tsvi Lissar, of Lissar Architects and City Planners. Lissar insists that the criticism of the design stems from a nostalgic perspective that is cut off from reality. Even so, Lissar does not hide the fact that the traffic arrangements played a central role in the planning process. Among other things, he relates that the depth of the square's foundations was calculated in keeping with a plan for a subway train with a station in the plaza of nearby Chen Cinema. Lissar feels there is no need to tear down the square, but rather just make some changes and adjustments.

"Of course I would do all sorts of things differently now," says Lissar, "but I think the concept is good even today. The square's weak spot is the pedestrian crossings of Dizengoff, Pinsker and Reines Streets, which in the original plan were next to the square, but were moved away by orders of the Transportation Ministry.

"There are two large streets beside the square that create a continuum. These are places with piazza qualities (small, attractive squares that are very common in Italy) - that were never turned into such due to business considerations. I think the area around the square should be made into a cultural center. Bookstores and art galleries would make pleasant surroundings."

Lissar adds that he would also change the finishing materials.

"Kikar Dizengoff was inaugurated in 1978 and was built from the best materials available back then," continues Lissar. "Today I would change the finishing of the floor and use more durable materials. The original design included sunshades that were left out due to budgetary constraints. Returning Kikar Dizengoff to its previous state will create a virtual square. People will not come to the central area, which will be a traffic island separated from the circular sidewalk by a road. There will only be a sense of space, but the square will not function. Just like Kikar Hamedina."

Even people who disagree with the idea of razing Kikar Dizengoff do not think it is a role model. There is also no such dispute regarding Kikar Atarim. Unfortunately, it is harder to find examples of successful squares.

Tamir-Tawil says that the most successful square in Israel is the Western Wall plaza. It is an urban space that is almost always bustling with activity. Kikar Rabin is also a good square. It is important to remember that it was not intended as an active square, like a piazza, but as a monochromatic plaza it serves its purpose. Jerusalem's Zion Square and Kikar HaChatulim (Cat Square, behind Nahalat Sheva) are always busy, and are part of a successful urban system. "A good square needs easy access," explains Tamir-Tawil, "and activities around its edges and surroundings. The facades of the buildings facing the square are less crucial."

Lissar believes there is no formula for planning a square, and each instance is different. "A good square is influenced by its geometry, its surroundings," he says. "Some squares are built even before their surroundings. It is important to understand who comes to the square and how they get there. There is another component, which I call the street connection. People walk along the street and stop to meet other people, or to watch, and experiences area created that depend on the surroundings. "Some people contend that a square must be on the level, with the street, but that is a matter for debate. Today, when you stand on top of Kikar Dizengoff, you see the buildings and the cars passing beneath the square and coming out the other side. This is a different type of experience." Lissar offers the example of the square beside the Ordea cinema in Ramat Gan as a successful square. "The rectangular square is connected with a road; there is a synagogue on one side and a road that is closed on Shabbat, becoming part of the sidewalk. That is a square with a human element." So what can be done to improve Israel's squares? Tamir-Tawil says it starts with the planning. "A square's success depends on its really being wanted from the outset, and not as an afterthought or byproduct of something else. A good square, in other words, is a goal in its own right."

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The pitter-patter of big feet

Galit, a woman in her early thirties, had been looking for a place to rent in Tel Aviv for ages. A little apartment, something nice. Months passed and she figured she'd seen every available rental space in town. Then she spoke with a landlord in Bavli, and thought his description over the phone sounded terrific - a little place in North Tel Aviv. She thought it was an independent unit, on the roof.

In fact, what he was offering was a room that was an integral part of the family home. "The entrance to the room for rent was the main one of the apartment. There was no separate one," she relates. "You go into the apartment, and right there is a staircase that leads to the room on the roof. The room itself was very small. It did have a shower and toilet of its own, and a tiny kitchenette of about half a square meter had been installed." It did offer a modicum of privacy, but not much more than that.

Why on earth would an established couple want to bring a stranger into their home, sharing their refrigerator and various intimate parts of their lives? Galit also thought it astonishing, especially since there was no separate entrance to the rooftop room.
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"You walk through the main entrance into the apartment and see the living room. There is no real separation between the family's apartment and the rented room," she explains. At any given point she, or whoever rents the room, could freely come downstairs and roam about in the family's private space.

The would-be landlord explained that his son had lived in that room on top, and left the nest. He and his wife could, of course, have let the room be - or they could rent it out for NIS 2,500 a month, which is a nifty NIS 30,000 a year. To them it was a no-brainer.

The thing is, the phenomenon is becoming increasingly common. Actually, renting out a room in the family home had been fairly common back in the 1950s and '60s. Students and other young adults would often find themselves living with an alternative family, as it were. But those were perhaps more intimate times. Today the rationale is financial: Rental prices in central Israel, mainly the greater Tel Aviv area, are sky high. A whole apartment as such is often unaffordable to many renters, and as for the families, the magnitude of the potential extra income is a siren's song that they can't resist.

As for the tenants, who would want to live cheek to jowl with a strange family? Well, anybody who can't find an affordable place in the area in which they want to live, for example.

Amir Shaltiel, who runs and runs the Eldar Project Marketing agency, says that an old rule-of-thumb has been broken. "In the past the boundary was clear: Landlords didn't rent a part of the apartment that could only be reached through the family space, because that lowered their standard of living," he explains. "But that line has become blurred as rental prices rise. It has become perfectly legitimate to rent a room on the roof that you can only reach through the family home."

Galit kept searching and found another place, where a woman had split her already-not large apartment into two units. The one for rent was all of 30 square meters in size, and the landlady seemed to be prepared to settle for a smaller space herself - plus NIS 33,000 a year.

Dream come true?

Elderly couples whose children have moved out, and who are living in a spacious apartment but are dependent on social security, can obviously use the passive income of rent - but the interesting thing is that the phenomenon is occurring across a broader spectrum. Sometimes young couples buy a large apartment and rent out a room or two, to help pay their mortgage. If they think of it in advance, their apartment can be designed to accommodate a tenant, somehow creating at least the illusion of privacy using plaster walls, internal doors or screens, and so on, says Shaltiel. Until the young couple has children, they don't need all the space and can often use the income.

Also, Israelis like to own their own property but because of real estate prices, they often can't really afford to. This is one way to make the dream come true. Anyway, youngsters are used to sharing apartments: it's even fun for them. The invasion of their privacy tends to be less of an issue than for an elderly couple not accustomed to trance music wailing through the ceiling.

Builders are accommodating the trend. Yohanan Haas, chief executive of Realty Executives, says that in Kfar Yona for example some 15% of the homes are being created with a discrete unit that can be rented out. "I guess that 10% to 12% of the families in the Sharon rent out their basements," he guesses.

Old Tel Aviv apartments were planned wastefully, points out Haim Kaufman of Kaufman Properties. They tend to have old-fashioned, closed-off "service porches," spacious hallways, separate kitchens - whereas today the fashion is for the kitchen and living room to be one continuous, open unit. Redesigning the interior can gain the owner a lot of space, some of which can be rented out. And the rental income can be used to pay for the renovation, too.

But take note: It isn't always legal to just up and split your apartment. In Tel Aviv there are whole streets where it's against the law. Before you hire an architect or take a hacksaw to your ancient kitchen table, check the local bylaws first.

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Environmental focus at Globes Real Estate Conference

Guests include Global Property Guides publisher Matthew Montagu-Pollock.

Globes' will hold its annual Real Estate Conference tomorrow at the David Intercontinental Hotel in Tel Aviv. Guest speakers will include Cushman & Wakefield director of research and business analytics Dr. Megan Walters and the publisher of Global Property Guides, Matthew Montagu-Pollock.

This year's conference plenums will focus on trends and predictions in the Israeli and global markets, infrastructure projects in Israel, as well as Israeli and international opportunities and development. Panel sessions will cover a variety of emerging topics in the Israeli real estate and construction industries. Green building panelists will examine the formulation of a standard and ask whether costs are excessive and if the public is will to pay more for environmentally friendly homes.

Property and Building reorganizes malls management

The company owns Yishpro centers in Modiin, Beersheva, and Kiryat Gat.

Sources inform ''Globes'' that IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Property and Building (TASE: PTBL) has decided to reorganize all the management of its malls under one umbrella group, in a similar fashion to the Azrieli Group and Israel Malls. The company intends to follow this by re-branding its entire mall segment.

Among the malls held by Property and Building are the Kiryat Ono Mall (which it jointly owns with Amot Investments Ltd. (TASE:AMOT in equal shares), the Givatayim Mall (jointly owned with Clal Industries and Investments (TASE: CII), the Em Hamoshavot mall in Petah Tikva, and the Yishpro chain of malls in Modiin, Kiryat Gat, Ness Ziona, and Beersheva, as well as other commercial properties.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Israeli basketball legend establishes real estate fund

The fund will invest in residential and commercial properties in Eastern Europe.

Sources inform ''Globes'' that former Maccabi Tel Aviv Basketball star Mickey Berkowitz is organizing a group of investors for residential and commercial properties, as well as rezoned agricultural land, in Eastern Europe. He said, "I'm still at the stage of reviewing options. I went to see possibilities and I believe that we'll begin operating on the ground within two or three months."

Real estate experts believe that Berkowitz was referring to developments that need an investment of €3-10 million for the purchase of land, and an additional €12 million for construction. The experts added that in order to enter these countries, the investor group will need at least €10 million in shareholders' equity and a local partner.

ADO buys much of Wardinon Real Estate

ADO chairman Adi Keizman: We're now in the advanced stages of building a company for the long haul.

ADO Europe Ltd. (TASE: ADO), controlled by Adi Keizman, today acquired control of Wardinon Real Estate Ltd. (TASE:WDRE) at a company value of NIS 88 million. In the first stage, ADO bought 60% of Wardinon Real Estate for NIS 52.6 million. The Wardinon family will continue to own the rest of the company and Dan Wardinon will stay on as CEO.
ADO bought nearly 77,000 shares at NIS 691.61 per share from two private companies owned by members of the Wardinon family. Wardinon Real Estate rose 2.3% by midday to NIS 506. ADO rose 0.1% to NIS 1.50.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

One in ten Tel Aviv luxury apartment buyers under 30

Nearly 90% are bought by married couples

"Globes" has obtained a copy of the first comprehensive survey of luxury apartment buyers in Tel Aviv. An analysis of the figures shows that the most common buyer is a married couple in their 40s, free professionals, who reside in Tel Aviv.
The survey was conducted by Ocif Investments and Development Ltd. (TASE: OCIF) and Aviv Co., which are jointly building a number of luxury projects in the city. They include Aviv Bazameret, Migdal Moshe Aviv, and Aviv Bagimmel. The survey included 398 buyers of apartments in these projects, with the aim of compiling a representative profile of the buyers.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Perhaps it really is a bargain Africa Israel

Analysts look again at Africa-Israel - those who dare, that is.
In less than a year, Africa-Israel Investments (TASE: AFIL) has gone from the status of the new "people's share" to being the outcast of the Tel Aviv 25 list. Since the peak registered last May, the share had fallen 60% before yesterday's upward correction, leaving many investors disappointed.

But if you ask controlling shareholder Lev Leviev, Africa-Israel is actually a very interesting stock. "Africa-Israel is the biggest bargain on the market," Leviev said in warm defense of the stock at the International Rough Diamonds Conference that took place on Tuesday.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008