$245M Land Deal in Beit Shemesh: Haredi Businessmen  & Steve Witkoff Bet Big on Future Housing Project Despite Zoning Hurdles

By: Ariella Haviv

A powerful consortium of Haredi investors has partnered with prominent American real estate developer Steve Witkoff in a landmark acquisition of 110 acres of land in Beit Shemesh, signaling one of the most ambitious private real estate investments in Israel in recent memory. As reported by VIN News on Wednesday, the group—comprised of major players in both U.S. and Israeli markets—is paying approximately $245 million for the southern half of a larger 222-acre plot known as Beit Jimal.

The deal was officially signed in April and marks Steve Witkoff’s first major venture into Israeli real estate. Known for his developments in Times Square, Tribeca, and the Woolworth Building in New York (which he co-owns with the Schron family), Witkoff’s expansion into Beit Shemesh suggests both high confidence in the area’s growth and a strategic interest in the Haredi housing market.

As the VIN News report detailed, the transaction is being led by the Schron brothers, Avi and Eli Schron, of Cammeby’s International, alongside investor Teddy Lichtschein, each reportedly contributing over $50 million to the deal. These funds are part of a total $120 million equity injection led by Shlomo Bruner, a respected name in Israeli and American real estate finance.

Additional participants in the consortium include developers Yechiel David Potash, Elimelech Fisher, and the Mizrahi brothers, Mordechai and Ben Zion, all of whom bring deep local development expertise and political acumen to a project of this scale.

The seller, Ziva Cohen, who bought the entire Beit Jimal tract from a Catholic monastery more than a decade ago for approximately $82 million, will retain ownership of the northern portion. Cohen stands to realize a massive return on her initial investment, as VIN News reports.

Despite the deal’s fanfare, the VIN News report noted the project’s viability remains subject to a web of municipal and regulatory challenges. The land has no approved outline plan (TABA)—a requirement for formal rezoning and construction. Beit Shemesh Mayor Shmuel Greenberg has placed a temporary freeze on advancement until developers comply with new stipulations, including the integration of commercial zones—such as five office towers—to ensure fiscal sustainability for the city.

Further, Greenberg’s administration has voiced strong opposition to the proposed 12-story buildings, citing religious sensitivities and the preferences of the local Haredi community. The mayor has reportedly capped his willingness to support buildings at nine stories, which could drastically alter the financial structure of the proposed 13,000-unit development.

The complexities of the deal don’t end with zoning. Legal entanglements loom large. According to the information provided in the VIN News report, a pending Supreme Court case involving developer Eli Klein and EKA Real Estate could derail or delay progress. Klein claims a right of first refusal on the land, an argument the court has yet to resolve.

Additionally, developers face steep development fees, with each housing unit potentially incurring costs of up to $41,000 in infrastructure and municipal fees. There are also uncertain betterment levies, which could spike dramatically if the zoning status of the land changes favorably.

To manage these risks, the investor group has structured their capital contributions as shareholder loans with a high annual interest rate of 12%, underscoring both the deal’s speculative nature and the long-term horizon expected before substantial returns can be realized, the VIN News report said.

Despite the tangled legal and political context, demand for housing in Beit Shemesh—particularly in the Haredi sector—remains robust. The report at VIN News explained that the city’s rapid growth, young population, and need for high-density, community-oriented housing make this project both socially relevant and potentially lucrative.

The involvement of figures like Nachshon Kivity, a known expert from BSR Group, lends engineering credibility and suggests a long-term strategic plan is already under way, even if implementation remains years out.

This $245 million investment represents more than a bold real estate acquisition—it’s a high-stakes bet on the future of Beit Shemesh as a major residential and commercial hub. As the VIN News report emphasized, the deal’s success depends not only on market demand but on navigating a complex landscape of zoning approvals, municipal cooperation, and legal resolution. With seasoned developers on both sides of the Atlantic and mounting pressure for new housing in the Haredi community, the coming months will be critical in determining whether Beit Jimal becomes Israel’s next major urban expansion—or a cautionary tale of development ambition stymied by red tape.