Calle Lucena- Estudio C

We present the third of our five planned flipping investment opportunities in the Lucena Project.

You can read more about our flipping proposal here, and a summary of what the Lucena Project is about here.

The project consists of acquiring two adjacent commercial premises, taking advantage of the low initial cost of the property, to obtain five independent studios, each with its own cadastral reference. 

Our proposal is to add value to the project through the renovation of the premises, the change of use, and the horizontal division. As usual, we will furnish the property and also offer a turnkey product for the final investor.

The main objective is to develop an attractive product, focused on high demand and very limited supply: a fully renovated property, with capacity for 2 people, in an excellent location and at a highly competitive price that makes it accessible to any investor.

This is the third operation in our "flipping" model, a new line of more dynamic projects, with greater capital turnover and attractive returns for our investors. The main goal is to achieve the sale in the shortest possible time.

Why invest in converting commercial premises into residential properties?

It is an investment strategy with significant profit potential, especially considering the current real estate market situation. With this strategy of converting commercial spaces into residential properties, we can also take advantage of the increasing demand for affordable housing due to urban growth.

Among the main advantages are:

• Investment time horizon

Until now, our investment horizon was 5 years; in these opportunities, we have reduced our horizon to 4 years. Reducing it further would cause the IRR to spike, and we do not want to publish excessively high IRRs. However, our goal will be to sell the properties in less than a year.

• Diversification and capital turnover:

Integrating these operations into our portfolio, along with other types of investments, allows us not only to diversify risk but also to rotate capital more frequently. The rapid market entry of this product (flipping) provides liquidity, increases the global portfolio IRR, and allows us to reinvest in other projects with greater agility.

• Taking advantage of the current regulatory context 

Investing now, before the new habitability regulations come into effect, ensures access to projects that are easier to process and execute, with lower regulatory costs and greater certainty. Once legal conditions become stricter, the value of the properties we have already transformed will increase, consolidating our investment returns.