Madrid Center, Madrid, Spain

Strategy: Added Value, Hospitality

Nestled in the vibrant heart of Madrid's Lavapiés district, this co-living investment offers an unparalleled blend of cultural immersion and urban convenience, making it a highly attractive option for residents. The property's prime location, surrounded by an array of amenities, bustling cultural hotspots, and exceptional transport connectivity, naturally positions it as a preferred choice for those seeking an engaging urban lifestyle. By transforming this space into a modern co-living environment, the investment capitalizes on the district's eclectic appeal and Madrid's dynamic atmosphere, ensuring consistent demand and a thriving community, subtly underlining its potential for sustained occupancy without directly mentioning vacancy rates.

Investment Highlights

  • EU Strategic Location

  • Top Tourist Destination (#1 in 2023)

  • Co-Living Innovation

  • Excellent Transport Connectivity

  • Cultural Hotspot Proximity

  • Fully-Equipped Private Rooms

  • Added Value Investment

  • Communal Collaboration Spaces

Offering Snapshot

  • Land Area

    990 SF

  • Total Square Footage

    10,162.12 SF

  • Rentable Area

    8,234.00 SF

  • Year Built

    1900

  • Asking price

    $4’560,000.00

    (incl. RENO + 1Y OPs)

  • Property Breakdown

    • 47 Rooms + 550 SF Shared Areas + 1,450.0 Retail Area2

  • Units area

    • L1: 107 SF + Shared BA

    • L2: 103 SF + Private BA

  • Zoning

    Residential (R)
    Commercial (C)

  • LTV

    70%

  • Cap Rate

    7.00%

  • Return - IRR

    29.59%

  • Gross Rental Income

    $ 404,783.35

Location Highlights

  • #1

    Best place to Move by Forbes

  • A

    Country Risk

  • 3.36%

    10Y Interest rate

  • 8%

    Spanish GDP driven by tourism

  • Lowest EU Cost of Living Index

  • €234 Billion

    Madrid GDP

  • 7.6%

    % of Madrid Population born abroad

  • ~19,000

    Madrid New International Students YoY

  • 4.9%

    Growth in Real Estate Prices in 2023

“Transforming urban living in Madrid's vibrant Lavapiés: A co-living space where culture, convenience, and community converge.”

  • Discount Rate

    9.5%

  • Vacancy Rate

    A conservative 5%

  • Exit Strategy

    10 Year

  • CoC Return

    13.65%

The investment analysis, tailored for the co-living venture in Madrid's Lavapiés, reflects meticulous financial planning, incorporating prevailing market trends and operational forecasts. With a remarkably low vacancy rate of 5%, in line with recent market behaviors, the investment boasts an impressive IRR of 29.59%, signaling strong potential for substantial returns. The asking price, inclusive of a year's operational runway, ensures a smooth transition into the co-living model, promising immediate revenue generation and operational stability.

This strategic financial approach underscores the investment's appeal, with a 70% Loan-to-Value (LTV) ratio optimizing capital efficiency while maintaining a healthy leverage level. The addition of three independent retail spaces introduces diverse income streams, enhancing the property's financial robustness. The planned transformation into a co-living space, featuring apartments with 3 to 4 rooms and both private and shared bathrooms, is poised to meet the modern tenant's needs, further solidifying this investment as a compelling opportunity in Madrid's dynamic real estate landscape, particularly for those invested in the burgeoning co-living market.

For interested investors seeking a deeper understanding of this opportunity, further information will be provided during subsequent discussions. This will include a comprehensive market analysis, detailed risk mitigation strategies, and an in-depth review of the financials.

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