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At Brickstarter we have good reason to celebrate, as we start 2023 with a project that is large for us: a building with 6 properties that we will transform for coliving rental in the city of Castellón!

This is a project in which Brickstarter expects to add value to the property, which we hope will allow us to sell the property in the future, with no guarantee of the price or the timing.

This is a complex operation in which we will seek to add value to the property through 4 actions:

1. Bulk purchase.
2. Change of use of certain floors to residential.
3. Horizontal division in order to obtain 6 independent cadastral references.
4. Operating it under a coliving arrangement to seek to improve its return, and thus be able to sell it as a going concern with a track record.

Description of the property and of the different actions:

1. Property: This is a building with a ground floor plus 5 upper floors located at Calle Zorita number 20 in Castellón. It is in one of the areas with the highest demand for rooms for rent because of its proximity to the University of Castellón.
2. Purchase price: We will acquire it at an average price of €652 per square meter. Since the property has different uses, we have assigned a purchase price to each of the units, taking into account its use and its current state of repair, thus obtaining an average price per square meter. According to our allocation and estimate, the purchase price of the entire property is 44% lower than the market price. This could make a sale in the short term easier, without the result or the timing being guaranteed, if the sale price is competitive.
3. Change of use of the attic and the ground floor to housing in order to obtain 2 additional apartments. This change of use has already been studied with our architect, who has already made the relevant inquiries to the city council. This operation could add value to the property, subject to obtaining licenses.
4. Horizontal division: renovating it and carrying out the project with the aim of creating the 6 independent cadastral references, so that we can sell all the properties as a block or separately. Another action that could add value to the operation.
5. We are going to enhance its value by putting it into operation to earn a return under a coliving arrangement. It is worth noting the location of the property, close to the UJI university in Castellón, El Corte Inglés, the train station and Parque Rivalta. According to our analysis, there is demand for this type of property in the area, without this guaranteeing its occupancy.
6. Selling it to an end buy-and-hold investor, on a turnkey basis.

Current situation of the property.

Currently the whole building is a single cadastral reference, made up of 6 floors with different assigned uses:

1. The ground floor housed a former shop (a butcher's). However, according to the cadastre, its designated use is Parking. We will change its use to housing. It is currently an open, undivided space. It has 89 square meters according to the cadastre.
2. The first floor has been completely renovated. It is an apartment that is ready to move into. However, we will modify it by adding a room, leaving the kitchen-dining room as the only common area. 83 square meters according to the cadastre.
3. The second floor is practically renovated (it is missing the kitchen). With a layout similar to that of the first floor, we will likewise adapt it to obtain an extra room. 83 square meters according to the cadastre.
4. The third floor is a completely open, undivided space, so a full renovation of the apartment is required. 83 square meters according to the cadastre.
5. The fourth floor is likewise a completely open, undivided space. 83 square meters according to the cadastre.
6. The fifth floor is an open space with 2 large terraces. It is the attic space under the roof, which we will modify to obtain a new cadastral reference. It currently cannot be used as housing. 37 square meters according to the cadastre.

In this way, we are acquiring a building with 6 possible properties for €300,000. Taking into account the price per square meter of new construction in Castellón, €1,591/m2, these 2 homes alone would be worth €264,106, so the implied cost of the other 4 homes would be €35,894, according to our estimate, which does not guarantee their sale value.

Participation through Brickstarter.

Because we are acquiring 6 properties with different characteristics (in terms of condition and the work to be carried out), we have decided to publish 6 separate opportunities instead of publishing a single opportunity.

It should be borne in mind that, after all the work, we will still have properties with different characteristics, since, for example, there will be properties that we can put into operation before others, and some will require more intervention than others.

In this way we have assigned a valuation according to the characteristics and condition of each property, so that the estimated returns could also vary slightly.

This will allow us greater flexibility when publishing the opportunities and more efficient management of resources, and you, as investors, will be able to decide whether to invest more or less as the project develops. This flexibility does not eliminate the risk of loss.

Past or estimated returns do not guarantee future returns. Investing involves a risk of total or partial loss of the invested capital.