Rafael expands R&D footprint with $153M real estate deal in Tel Aviv
Move tied to Israel Land Authority agreement to vacate East Tel Aviv site.
The government-owned defense company Rafael Advanced Defense Systems has purchased 6.5 floors of office space in the Cosmopolitan development, located in the Yitzhak Sadeh complex in Tel Aviv (formerly the Hassan Arfa complex). The deal is valued at approximately NIS 521 million ($153 million), with occupation expected by 2030.
The move reflects Rafael’s continued expansion, particularly in its research and development activities. In 2018, the company established a 5,000-square-meter R&D center in the Ha’arbaa Towers in Tel Aviv. In 2023, it leased an additional 3,000 square meters in the Mul HaHof Village Tower in Hadera. The newly acquired space spans approximately 16,000 square meters, indicating a purchase price of around NIS 30,000 per square meter.
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Cosmopolitan Project (visualization). Four commercial and residential towers in Tel Aviv
This acquisition was made as part of an agreement with the Israel Land Authority, tied to the planned evacuation and relocation of Rafael’s operations from its Horodetski compound in east Tel Aviv.
The Cosmopolitan project is a large-scale, mixed-use development comprising four towers that will incorporate residential, office, commercial, educational, and community functions. It is being constructed in two phases:
Phase 1, known as Cosmopolitan 1, where Rafael will establish its new office space, spans 10 dunams and is located at the southeastern corner of the complex, at the intersection of HaMasger and Israel Tal streets.
This phase includes two towers: a 100,000-square-meter office tower and a mixed-use building with residential, office, and commercial functions. The residential portion will include 334 apartments and is currently undergoing exterior cladding.
Phase 2, or Cosmopolitan 2, is located on a 6-dunam site in the northwestern corner of the complex, at the Maariv Junction (the intersection of Yitzhak Sadeh and Menachem Begin streets). This phase is in advanced planning and will include two more towers, one primarily for offices and the other mainly for residential use, including 170 apartments.
The project is being developed by a partnership including Acro Group, The Phoenix, Yuvalim Cityboy, and Shabat Moshe Company (which holds a 10% stake in Phase 1).
