Lightstone raises $120M on Israeli bond market

David Lichtenstein’s firm follows path of Extell, Brookland

TRD New York /
Jan.January 06, 2015 03:10 PM

David Lichtenstein’s Lightstone Group raised $120 million on the Israeli bond market, joining other New York developers who have tapped the market to finance local building projects.

Lighstone Enterprises Limited, a subsidiary of Lightstone, issued the $120 million unsecured corporate bonds on the Tel Aviv Stock Exchange, where the bonds began trading Dec. 8, 2014.

Lightstone will use proceeds of the bond offering to fund future growth. “This is an important ongoing source of capital,” Lichtenstein said in a statement Tuesday.

In turning to the Israeli bond market, Lightstone is borrowing a page from the playbooks of Extell Development and Brookland Capital, which raised $271 million and $34.5 million, respectively, by selling Israeli bonds.

Cheaper borrowing costs and investor demand have led to an Israeli bond boom in recent months: Companies sold $14.6 billion in bonds through Nov. 20, 2014, compared with $8.7 billion in the same time period in 2013, according to Bloomberg News. Extell and Brookland, as well as Zarasai Group Ltd., which owns apartment buildings throughout New York, were among the U.S. real-estate developers to jump into the fray.

This past summer, Lightstone and Steve Witkoff’s Witkoff Group reportedly were mulling bond offerings of $141.6 million each, according to Israeli newspaper Haaretz. The Witkoff Group is not pursuing a bond offering, Steve Witkoff told The Real Deal in an email message Tuesday.

Lightstone has $2 billion of development projects in the pipeline, according to its website. Last month, it bought a 16-story building at 485 Seventh Avenue in the Garment District for $200 million. The developer reportedly plans to gut renovate the property or turn it into a hotel.

Meanwhile, Lighstone’s 700-unit development in Gowanus is progressing. The developer picked up a $120 million construction loan in October for a 12-story apartment complex 363-365 Bond Street.


Related Articles

arrow_forward_ios
Brad Lander, Bill de Blasio and Gowanus (Getty)

Group launches campaign to save Gowanus rezoning

Group launches campaign to save Gowanus rezoning
Council member Brad Lander and Gowanus (Credit: Lander by Erik McGregor/Pacific Press/LightRocket via Getty Images, Spencer Platt/Getty Images)

Will Gowanus be the next botched rezoning?

Will Gowanus be the next botched rezoning?
From left: David Lichtenstein, Nathan Berman and David Schwartz

Not so fast, vultures: Multifamily among better “food groups” poised to weather pandemic

Not so fast, vultures: Multifamily among better “food groups” poised to weather pandemic
Tonight on TRD Talks: Maintaining multifamily in a tumultuous time

Tonight on TRD Talks: Maintaining multifamily in a tumultuous time

Tonight on TRD Talks: Maintaining multifamily in a tumultuous time
Cyril Berdugo and Tom Petit (Credit: Landis)

Proptech startup Landis inks deal to turn renters into buyers

Proptech startup Landis inks deal to turn renters into buyers
147-07 94th Avenue in Jamaica and Pheonix Realty Group president Keith Rosenthal (Credit: Google Maps)

Phoenix Realty, Artimus snag $181M loan for Jamaica resi project

Phoenix Realty, Artimus snag $181M loan for Jamaica resi project
King Street Properties’ Rob Albro, Eric Gural and 45-18 Court Square in Queens (Credit: GFP Real Estate, King Street Properties, and LoopNet)

GFP partnership lands $156M loan to build LIC biotech center

GFP partnership lands $156M loan to build LIC biotech center
Stephen Levin, Brad Lander, 187 and 195 Hoyt Street (Credit: Google Maps, iStock)

Pols ponder NYCHA air rights sale for Gowanus

Pols ponder NYCHA air rights sale for Gowanus
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...