New project! Diversify into office space in central Madrid
Last Updated on 17 March 2026 by Equipo Urbanitae
Next Friday, March 20 at 12:00 p.m. (UTC+1), we will open for investment Oficinas Mazarredo, a real estate investment opportunity based on the acquisition and repositioning of an office building in central Madrid.
- 📅 Investment opens: Friday, March 20 at 12:00 p.m. (UTC+1)
- 🎙 Project webinar: Wednesday, March 18 at 5:00 p.m. (UTC+1)
Representatives from the asset manager and the Urbanitae team will take part in the webinar to explain all the details of the project and answer investors’ questions.
An office building in Arganzuela
The Oficinas Mazarredo project involves the acquisition of the company that owns an office building located at 7 Mazarredo Street, in the Arganzuela district, within the M-30 ring road.
It is located next to Google’s former campus and benefits from excellent public transport connections:
Puerta del Ángel metro station (Line 6)
Ópera metro station (Lines 2, 5 and branch line)
Príncipe Pío metro station (Lines 6, 10 and branch line)
There are also numerous bus lines less than a five-minute walk away.
The property is a standalone office building with approximately 3,967 sqm of built area, distributed across a basement, ground floor and three upper floors. The building was constructed in 1930 and fully refurbished in 2017, and has held an office/commercial use licence since 2000.
The asset is currently leased and generating income, although at rental levels below current market rates.
The project manager
The manager of this transaction is FREO Group, an international asset manager specialising in real estate investment, development and asset management.
Founded in 1996 and active in Spain since 2015, the firm has extensive experience in value creation strategies through active asset management, including:
- renegotiation of lease agreements
- asset repositioning
- occupancy improvement
- execution of capex plans
Its model is based on identifying assets with upside potential and optimising them through active management throughout their life cycle.
Value creation strategy
The strategy behind Oficinas Mazarredo is to reposition the asset in order to maximise its market value.
The building is currently occupied by an international coworking operator, present in more than 450 locations worldwide and with a strong footprint in Spain.
The current lease expires in June 2027, at which point the manager expects to:
- Renegotiate the lease with the current tenant at market levels, or
- Sign a new lease agreement with a new tenant
During this process, maintenance works and upgrades will be carried out, including obtaining an ESG certification, in order to strengthen the asset’s positioning in the office market.
Once the building has been stabilised at market rents, the goal will be to sell the asset to an institutional investor.
Investment structure
The transaction will be structured through a capital increase in the project company.
Urbanitae investors and co-investors will contribute equity alongside the manager to finance the transaction.
The main features are:
- Total investment capital: approximately €8.2 million
- Urbanitae allocation: €3 million (expandable by an additional €2 million)
- Manager contribution: 10% of total capital
The manager also expects to arrange bank financing for the acquisition of the asset, for which indicative terms have already been received from a financial institution.
In this video, we explain the key points of the transaction.
Why invest in Mazarredo
These are some of the project’s main strengths:
- Prime location in Madrid, within the M-30 ring road
- Competitive acquisition price, below current market benchmarks in the area
- Potential for rental growth, with current rents below market
- Scarcity of comparable assets in terms of size, type and location
- Institutional manager with extensive experience in value-add strategies
Target return in 2028
The estimated duration of the Oficinas Mazarredo project is 22 to 26 months.
The main expected milestones are:
- April 2026: closing of the transaction and acquisition of the company owning the asset
- January 2027: start of lease renegotiation
- June 2027: expiry of the current lease
- Second half of 2027: signing of a new lease and marketing of the asset
- Second quarter of 2028: sale of the building and liquidation of the project
If you would like to learn all the details of the project, you can join the webinar on Wednesday, March 18 at 5:00 p.m. (UTC+1).
And remember: Oficinas Mazarredo opens for investment on Friday, March 20 at 12:00 p.m. (UTC+1).
If you have any questions, you can email us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
Si quieres, te la puedo adaptar también a un inglés un poco más comercial o más institucional, según cómo queráis enfocar la pieza en el blog.
