Calle Lucena- Estudio A

We present the first of the five "flipping" investment projects we have planned: the Lucena Project.

You can read more about our "flipping" typologies here, and find a summary of what the Lucena Project entails here.

The project involves acquiring two adjacent commercial premises and converting them into five independent residential apartments, each with its own cadastral reference.

We will add value to the project through renovation, a change of use, and horizontal division. We will furnish the property and create a turnkey product for the future end investor.

Our goal is to create an appealing product: one that, according to our analysis, has demand and is currently in short supply—a fully renovated property that can accommodate 2 guests, in a central location, at a competitive price.

This first "flipping" operation is planned as the starting point of a new line of projects with higher capital turnover and estimated returns for our investors.

The objective is to sell in the shortest possible time frame.

Why Invest in Transforming Commercial Premises into Residential Units?

Converting commercial spaces into residential units represents an investment strategy with potential for returns, according to our analysis, especially in today's real estate market. Moreover, this model allows us to take advantage of key trends such as urban growth and the increasing demand for affordable housing.

Some of the main advantages include:

• Increased Property Value

Changing the use from commercial to residential meets the demand for housing in urban environments and, according to our estimates, may increase the property's value.

• Income per Square Meter

Studios, although smaller, could generate, according to our estimates, proportionally higher income per square meter than multi-bedroom apartments. This is because each studio is rented as a complete unit, which could increase income by dividing a space into several independent units rather than renting rooms under a single contract. It is estimated that each studio will generate €8,400 in annual rental income.

• Appeal to Various Demographics

Studios attract a diverse audience, from students and remote workers to expatriates and young couples. This wide range of target customers could support demand, as these units are generally more affordable.

• Competitive Market Price

The target price of €77,019, once renovations and furnishings are completed, would, according to our estimates, remain below the market values in the area. This may be an advantage over comparable properties and could support a quick sale or occupancy if rented out.

• Estimated IRR:

The combination of a low target price and the potential for income generation after renovations allows for a projected IRR of 11.5%. According to our estimates, this could result in returns from both cash flow and asset appreciation.

This project combines estimated returns and meets current market demands for accessible housing.

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