The US government will buy a 16-story apartment building in the Israeli city of Beit Hanina for $750 million, according to the Israeli daily Haaretz.
Beit Hanin is one of the most affluent areas in Israel, but the town’s residents have been suffering for decades from a lack of housing.
The Israeli developer that bought the building, NIS, will use it to house up to 1,500 people, and the project is slated to be completed in 2028.
The project will be financed by the Israel Mortgage and Housing Corporation, the largest private lender in Israel.
The new building will be one of a number of projects that NIS is building in Beit Shemesh.
The company is currently building a $7.4bn apartment complex in the southern part of the city, and it plans to complete a $4bn mixed-use project in the northern half.
The Beit Hamra project will include apartments for up to 4,500 residents.
According to Haaretz, the building’s owners are currently seeking financing from a number other investors.
Haaretz reported that the building was purchased from the late Israeli developer, Haim Rosenfeld, and will be developed by Israeli developer Adler Realty.
“The owners of the building said they will use the money from the sale of the project to create affordable housing for all the residents of the area,” Haaretz quoted the developers as saying.
“The construction will be completed over the next few years, and by 2028, there will be an additional 400 residents living in the project.”
In a statement to the newspaper, NIST’s Director General Mark Buechler said that the NIS project was a “major milestone” in the construction of affordable housing in Israel and the United States.
In the United Kingdom, the UK government announced in December that it had purchased an apartment building, the £1.6bn Houghton Hotel, in central London, in a deal worth an estimated £400 million ($530 million).
“This is an excellent example of how the private sector can help local communities and the country’s economy by providing new housing,” London Mayor Sadiq Khan said in a statement.
“This will help to create new homes, jobs and opportunities in the capital.”