An agreement between the group and public company A. Levy states that it will be given an option for a period of four months to purchase a plot spreading over 1.7 acres in return for NIS 39 million (about $9.85 million).
The city construction plan for this land allows the building of 80 housing units, and so the return for the land reflects a price of NIS 487,000 ($122,830) per unit.
The tower will be built over an area of 0.6 acres, and the remaining area will serve as a public garden. The building's planned apartments will measure about
100 square meters (120 square yards) for four-room flats and 115 square meters (137 square yards) for five-room flats, at an average price of $3,000 per square meter.
The company estimates that a four-room apartment will be sold for NIS 1.2 million ($302,500), a five-room apartment will be sold for NIS 1.4 million ($353,000) and a five-room duplex will be sold for about NIS 1.8 million ($454,400).
According to Capital Group CEO Alon Hertzog, "The decision to start a buyers group in Ramat Gan stems from the high demand for apartments in the city, and from the fact that the cost of apartments in the new project is expected to be significantly lower than the prices of apartments in the area."
Herzog added that in light of the project's relatively cheap apartment despite its nature and attractive location, he expected the group to get organized within a very short period of time, and said the official marketing would begin next month.
"At the first stage, Capital Group will market the units exclusively to its existing clients," he said.
Capital Group specializes in organizing buyers groups since 2001, and is behind the Migdal Hamoshava buyers group in Petah Tikva's Em Hamoshavot neighborhood. The company has additional projects in Tel Aviv and Be'er Yaakov. It is also active abroad – in the United States and Romania.