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

A few months ago, Brickstarter made the decision to go a step further and promote buildings with changes of use, with the aim of adding value to our investments, without guarantee. These are much more ambitious opportunities, but with longer completion times, in which everything related to municipal permits, utility hookups, etc. takes longer.

These opportunities seek to add value through a comprehensive transformation of the property, with longer timescales and additional risks.

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-sourced opportunity 
• Change of use from commercial to residential 
• Horizontal division to obtain 3 new cadastral references. 

 Anyone involved in the sector 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 a former ground-floor commercial unit 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 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 consider it viable.

The investment decision is based on an analysis of the market and the expectation that, through the comprehensive renovation of the property, we may be able to create an attractive property for investors, without guarantee.

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 as whole units and not by the room, 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 comprehensive renovation of the ground floor will include the updating of materials, finishes and systems, raising the quality and comfort standards of the house.
• Potential increase in value: a renovation may increase the value of a property, which could allow us to offer it at a price attractive to buyers; this is not guaranteed.
• Potentially reduced selling times: A renovated and updated property may sell 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 could offer potential for appreciation and may help a sale; a sale within any given period cannot be guaranteed.
• Bank-sourced opportunity: The low purchase price, resulting from being a bank-sourced opportunity, represents a significant advantage compared to the high prices of properties on the market, which have experienced a sharp increase in the last year.

Estimated IRR of around 11% for each of the 3 opportunities; this is an estimate and is not guaranteed.

This project has emerged as an opportunity because of its purchase price, which we estimate is below that of comparable properties. 

We believe this ground floor could be transformed into 3 independent apartments; the outcome depends on permits, works and the market, and is not guaranteed. With this initiative, we reaffirm our commitment to seeking to generate value for our investors; returns are not guaranteed.

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