Neve Tzedek, was a neighborhood once home to the artists and writers of the early 20th century. Overtime, the area became home to many Mizrahi, or Arab-Israeli Jews, and overtime, became run-down.
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Now, Neve Tzedek is a very trendy area of Tel-Aviv, with chic bars, expensive boutiques, and tons of art galleries. The homes are under huge gentrification, with the wealthy buying out areas that used to be classified as 'slums', and turning them into beautiful houses and hotels.
Its no surprise that the Jewish billionaire chose to take part in this project, and invest in the Varsano Hotel. Abramovich plans on turning the 1,500 square meter hotel into his new Israeli home.
The hotel is labeled as a 'preserved' building, one of the few that couldn't get knocked down as modern apartments were being built.
The entire transaction cost 100 million NIS, which is roughly $25 million.
Abramovich will be able to extend his property in the future, and hopefully this will shed more light on a neighborhood that was quickly forgotten, inviting more tourists and residents who want to move out of the more popular areas of Tel Aviv.