Calle Lucena- Estudio A

We present the first of the five "flipping" investment opportunities 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. As always, 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 is highly sought after and currently in short supply—a fully renovated property that can accommodate 2 guests, in an excellent location, at a very affordable price, making it accessible to any investor.

This first "flipping" operation will be the starting point of a new line of more agile projects, with higher capital turnover and very attractive 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 great potential for profitability, 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 not only meets the high demand for housing in urban environments but also significantly increases the property’s value.

• Higher Total Income per Square Meter

Studios, although smaller, tend to generate proportionally higher income per square meter than multi-bedroom apartments. This is because each studio is rented as a complete unit, maximizing income by dividing a space into several independent units rather than renting rooms under a single contract. It’s 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 ensures constant demand, as these units are generally more affordable.

• Competitive Market Price

The target price of €77,019, once renovations and furnishings are completed, remains below the market values in the area. This not only provides an advantage over comparable properties but also increases the likelihood of a quick sale or high occupancy rates if rented out.

• Exceptionally High IRR:

The combination of a low target price and the potential for income generation after renovations allows for a projected IRR of 11.5%, a standout figure in the real estate sector. This means significant returns can be expected, both in cash flow and in asset appreciation.

This is an attractive investment opportunity that combines sustainable profitability and meets current market demands for accessible housing.