{"id":78450,"date":"2026-01-02T14:26:52","date_gmt":"2026-01-02T13:26:52","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=78450"},"modified":"2026-01-02T14:29:38","modified_gmt":"2026-01-02T13:29:38","slug":"irr-of-14-7-in-madrids-golden-mile","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2026\/01\/02\/irr-of-14-7-in-madrids-golden-mile\/","title":{"rendered":"IRR of 14.7% in Madrid\u2019s Golden Mile"},"content":{"rendered":"\n

We have completed the payout and final liquidation of the Local Prime project<\/strong>, one of the most representative rental projects we have financed at Urbanitae. This operation has closed the full investment cycle<\/strong>: generating recurring income through rent, divesting the asset, and distributing the final profits to investors.<\/p>\n\n\n\n

The final result has been very positive, both in terms of profitability and execution, with an exit that occurred ahead of the initially planned timeline<\/strong>.<\/p>\n\n\n\n

Overall, the investment has generated a total return of 114.06%<\/strong>, translating into a cumulative return of 13.9%<\/strong> and an IRR of 14.71%<\/strong>, combining periodic dividends and the capital gain obtained from the sale of the asset.<\/p>\n\n\n\n

CRE Investment in the Golden Mile<\/h2>\n\n\n\n

Local Prime involved acquiring a commercial<\/a> property in the heart of the Barrio de Salamanca, in the immediate vicinity of Jos\u00e9 Ortega y Gasset Street, one of the most exclusive shopping streets in Spain and a European luxury retail benchmark.<\/p>\n\n\n\n

The asset had a gross leasable area of 349 m\u00b2 and was leased to one of the most renowned luxury fashion brands in the world<\/strong>, with a consolidated presence in major international capitals. The store was part of the spaces used by the brand to develop its large flagship in southern Europe.<\/p>\n\n\n\n

The location, tenant solvency, and nature of the asset positioned the project in the high-street prime<\/a> segment, where transactions are usually conducted at very tight yields and with high investor competition.<\/p>\n\n\n\n

Project Structure and Strategy<\/h2>\n\n\n\n

The project was structured as an equity<\/a> operation focused on rental income<\/strong>.<\/p>\n\n\n\n

The contribution from more than 850 Urbanitae investors amounted to \u20ac2,373,000, within a sizeable operation without resorting to bank financing<\/strong>.<\/p>\n\n\n\n

The strategy combined two sources of return:<\/p>\n\n\n\n