Sapir Corp. takes $32M loan from Tamir Sapir’s estate

Financing was used to pay back Israeli bonds
By Katherine Kallergis | May 19, 2019 05:45PM

Rendering of Arte by Antonio Citterio and Alex Sapir

The Sapir Corp. has closed on a $32 million refinancing from the estate of Tamir Sapir to pay back Israeli bonds that are due next year, The Real Deal has learned.

Alex Sapir, chairman of the company and executor of his father’s estate, said it was a “good time to perform the refinance.” The company, which is publicly traded on the Tel Aviv Stock Exchange, was facing an April 2020 maturity deadline for Series D bonds in the amount of 115 million shekels, or the equivalent of roughly $32 million.

“The bonds were close to full repayment anyway,” Sapir said. “The new loan provides better flexibility without the currency risk.”

The financing from Tamir Sapir’s estate will be due in April 2021 and has a fixed interest rate of 6.94 percent, according to Sapir Corp. It will not have a prepayment penalty, “which eliminates our need for hedging, and is a better fit for the project which is nearly complete,” said Baruch Itzhak, CEO of Sapir Corp.

Sapir is hoping to deliver Arte, a 16-unit, 12-story condominium building at 8955 Collins Avenue, this summer. Sales at the project, designed by Italian architect Antonio Citterio, launched with Corcoran Sunshine during Art Basel Miami Beach in December.

Alex Sapir has sold at least two units — to his mother, Bella, and to his sister, Ruth Sapir-Barinstein, for a combined $20 million for the entire eighth floor of the project. Earlier this year, the company sought shareholder approval to use the deposits to help fund construction costs tied to completing the development.

Units at Arte start at $10.2 million, and range from 3,150 square feet to 7,550 square feet. Amenities will include a 75-foot indoor swimming pool, an outdoor pool, rooftop tennis court, a fitness center and yoga studio, sauna, steam room and meditation pond, a children’s playroom, residents’ lounge and a catering kitchen.

The loan is secured by a 75 percent interest in Arte, which includes Sapir Corp.’s 62.5 percent and Alex Sapir’s 12.5 percent ownership interests.