The real estate market is experiencing intense competition and high demand for property purchases. This together with recent legislative changes has caused the supply of real estate has been reduced to historic lows, being increasingly difficult to find good investment opportunities, especially at competitive prices. 

A few months ago, Brickstarter took the decision to go a step further and promote buildings with changes of use, with the aim of bringing the highest possible value to our investments. These are much more ambitious opportunities, but with longer deadlines for completion, in which everything related to municipal permits, supply registration, etc. 

These are much more profitable opportunities, in which the added value is maximized through the integral transformation of the property.

Although this new opportunity is not the largest opportunity we have promoted (in terms of volume), it will undoubtedly be one of the most "complicated" opportunities, as it has all the characteristics that we "like" so much:

• Bank opportunity 
• Change of use from local to residential 
• Horizontal division to obtain 3 new cadastral references. 

 For anyone involved in the sector, you will know that these are operations that are mostly "tedious". But that is where the value lies.

The operation:

We present an investment project that consists of the transformation of an old commercial first floor into three independent apartments, (which will be published as independent opportunities on our website), each one with its respective cadastral reference. It is an opportunity coming from an investment fund and it will include the change of land use, in order to carry out its subsequent horizontal division into three new apartments for residential use.

It is an operation in which we have already been advised by lawyers and architects, and we know that it is viable.

The investment decision is based on a thorough analysis of the market and the conviction that, through the comprehensive renovation of the property, we will be able to create a property of great value and attractiveness for investors.

After the renovation, we will transform the commercial premises into 3 independent properties: a 2-bedroom, 2-bathroom apartment, and 2 studio apartments with one bedroom and one bathroom.

These apartments will be rented complete and not by rooms, although with short-stay contracts, since the final objective is the sale and we do not want to sell the properties with tenants.

Among the advantages of this project we can highlight:

• Space optimization: The renovation will allow us to redistribute and optimize the space, creating a functional and attractive design that responds to the needs and preferences of current buyers.
• Quality improvement: The integral renovation of the first floor will include the updating of materials, finishes and systems, raising the quality and comfort standards of the house.
• Increased value: A well-executed renovation significantly increases the value of the property, allowing us to offer it to the market at a competitive and attractive price for buyers.
• Reduced selling times: A renovated and updated property sells faster compared to properties that are in their original state.
• Sales price: Market reports in the area indicate that the sales prices of the apartments proposed under the business plans of the opportunities are below the current market price, which provides a great potential for appreciation, and assures an early disinvestment.
• Banked opportunity: The low purchase price, resulting from being a banked opportunity, represents a significant advantage compared to the high costs of properties on the market, which have experienced a sharp increase in the last year.
• Through all this intervention, we expect to obtain an IRR return close to 11% for each one of the 3 opportunities.

In this way, this project is born as an opportunity due to its excellent purchase price compared to the high costs of other similar properties in the market. 

We are convinced that the transformation of this first floor represents an excellent opportunity that will allow us to create 3 independent properties of great value and attractiveness in the current real estate market. With this initiative, we reaffirm our commitment to generating the highest possible value to ensure solid and sustainable returns for our investors.