On Friday, June 12 at 12:00 p.m. (UTC+2), we will open Lavapiés 50 for investment, a new real estate equity opportunity in the heart of Madrid.
The transaction involves the acquisition of a nearly refurbished residential building in the Lavapiés neighborhood, comprising 19 apartments and one retail unit, for operation as tourist accommodation under Madrid City Council’s Plan Reside framework and its subsequent sale to an institutional or private real estate investor.
- 📅 Investment opening: Friday, June 12 at 12:00 p.m. (UTC+2)
- 🎙 Project webinar: Wednesday, June 10 at 12:00 p.m. (UTC+2)
Mariano Martí, from Jamison Group, will join the webinar to explain the project in detail and answer investors’ questions.
A Refurbished Residential Building in Lavapiés
The asset is located at 50 Lavapiés Street, in Madrid’s Centro district. It is a building with a total constructed area of 1,443 sqm, distributed across a ground floor, four residential floors and a basement storage level.
The property comprises 19 apartments, a 192 sqm retail unit, and corresponding storage rooms. The building is already in an advanced state of refurbishment and requires only minor adaptations to operate as tourist apartments under the Plan Reside regulatory framework.
One of the transaction’s key strengths is that the estimated remaining capex is approximately €340,000, and no construction permit is required, significantly reducing planning and execution risk. The adaptations will be processed through a responsible declaration procedure.
Lavapiés: A Central Location with Flexible Demand
Lavapiés is one of the most dynamic neighborhoods in central Madrid. Its location, connectivity and urban character make it an area with strong demand from both tourists and medium-term residents.
The asset benefits from excellent transport links, close proximity to Lavapiés, Embajadores and Atocha stations, and a vibrant environment with a high concentration of cultural, gastronomic and residential activity.
The investment thesis is based precisely on this combination: a centrally located building that is already largely refurbished and offers the potential to operate initially in the medium-stay segment and later as a tourist accommodation asset under Plan Reside.
What Is Plan Reside and Why Is It Important?
Plan Reside is Madrid City Council’s regulatory framework that allows certain residential properties to be converted into tourist accommodation for up to 15 years, provided they meet the applicable technical and urban planning requirements.
In this project, obtaining the tourist accommodation license is a key value-creation driver. Conversion under Plan Reside broadens the universe of potential buyers at exit, particularly institutional and private investors seeking operational assets with recurring income streams.
The business plan contemplates an initial phase of medium-stay rentals, with leases of up to 12 months, while the license is being processed. Once granted, the asset would operate under a mixed short- and medium-stay model before being sold.
The Development Partner: Jamison Group
The project’s development partner is Jamison Group, a real estate firm founded in 2008 and backed by more than 25 years of experience in asset development and management across Europe, Latin America, Africa and the Gulf region.
The company is led by Mariano Martí, co-founder and expert in asset management and real estate law; Bertrand Guillot, managing partner with more than 30 years of international investment banking and private equity experience; and Victoria Dowling, project director with extensive experience in urban development projects in Madrid and Buenos Aires.
Jamison Group has managed assets worth up to $3 billion and structured investment funds exceeding €150 million across Europe and Latin America. In Spain, it operates residential and mixed-use assets in central Madrid, with a particular focus on short- and medium-stay accommodation.
The company currently manages a portfolio of 23 apartments in prime Madrid neighborhoods, including Las Letras and Salamanca.
14% Preferred IRR for Urbanitae Investors
The transaction is structured through a capital increase. Urbanitae investors will participate through DIMORA PROPERTIES 5, S.L., the SPV that will aggregate investors’ capital and subsequently invest in the project company, LARCHMONT SPAIN, S.L.
Total equity for the transaction amounts to €4.5 million. Urbanitae investors will contribute €3.375 million, representing 75% of the equity, while Jamison Group will contribute the remaining 25%, equivalent to €1.125 million.
The project also benefits from €4.445 million in senior bank financing, obtained through the assumption of the existing mortgage, eliminating financing risk.
Returns will be distributed as follows: first, Urbanitae investors recover their capital and receive a 14% annual preferred IRR; second, Jamison Group receives a catch-up equivalent to a 14% return on its contribution; and finally, any remaining profits are distributed 50/50 between Urbanitae investors and Jamison Group.
Value-Creation Strategy
The project’s strategy is based on three phases.
- First, the acquisition of a centrally located building that is already largely refurbished and purchased below its current appraised value.
- Second, the operation of the asset in the medium-stay rental market while the Plan Reside license is being processed. During this phase, the property can generate operating income before tourist accommodation operations begin.
- Third, once the license is obtained, the asset will operate under a mixed short- and medium-stay model, with the objective of stabilizing revenues and subsequently selling the building to an institutional or private investor.
The expected exit is based on the sale of the asset after the operational period. However, the project also benefits from an alternative exit route: the developer expects to use proceeds from the sale of other assets – Velázquez 97 and Santa Isabel 18 – to repurchase Urbanitae’s stake if necessary.
Why Invest in Lavapiés 50?
Some of the project’s main strengths include:
- Prime location in central Madrid, in the Lavapiés neighborhood.
- Nearly refurbished asset, with limited remaining capex requirements.
- No construction permit risk, as adaptations will be processed through a responsible declaration.
- Value-add potential through Plan Reside, the project’s main growth catalyst.
- 14% preferred IRR for Urbanitae investors.
- Strong alignment of interests, with the developer contributing €1.125 million of its own capital.
- Bank financing already secured through assumption of the existing mortgage.
- Dual exit strategy, through either asset sale or repurchase of Urbanitae’s participation by the developer.
Project Financial Information
For equity projects, applicable regulations do not allow crowdfunding platforms to communicate a specific projected return.
For this reason, Urbanitae publishes three financial scenarios for each opportunity – favorable, base and adverse – based on different revenue and cost assumptions.
In all cases, returns are calculated using the same formula:
(Projected Revenue – Estimated Costs) / Total Equity
All financial information, together with project documentation, valuation reports, market studies and comparable transactions, will be available on the project page.
Estimated Timeline
The business plan contemplates an estimated duration of 24 months.
Key milestones include:
- June 2026: transaction closing, management agreement execution and assumption of the existing mortgage.
- July 2026: commencement of conversion works. During this phase, rental income from existing leases is expected while works are carried out and the urban planning license process advances under Plan Reside.
- December 2026: completion of conversion works.
- July 2027: expected granting of the urban planning license.
- June 2028: sale of the asset following the operational period.
As with any real estate investment, timelines may vary depending on project execution, administrative procedures and market conditions.
A Value-Add Opportunity in Central Madrid
Lavapiés 50 offers investors the opportunity to participate in a value-add strategy in central Madrid, based on the acquisition of a nearly refurbished building, its adaptation for flexible accommodation use and the granting of a tourist accommodation license under the Plan Reside framework.
The combination of location, operational asset status, preferred return structure, significant developer co-investment and dual exit strategy makes this a compelling addition to Urbanitae’s equity offering.
The investment opportunity will open on Friday, June 12 at 12:00 p.m. (UTC+2).
Do You Have Questions About the Project?
You can submit your questions during the webinar on Wednesday, June 10 at 12:00 p.m. (UTC+2).
You can also contact us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
