{"id":84694,"date":"2026-04-17T11:43:48","date_gmt":"2026-04-17T09:43:48","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=84694"},"modified":"2026-04-17T11:47:16","modified_gmt":"2026-04-17T09:47:16","slug":"mazarredo-offices-ii-new-ticket-to-expand-a-value-add-office-deal-in-central-madrid","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2026\/04\/17\/mazarredo-offices-ii-new-ticket-to-expand-a-value-add-office-deal-in-central-madrid\/","title":{"rendered":"Mazarredo Offices II: new ticket to expand a value-add office deal in central Madrid"},"content":{"rendered":"\t\t
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On Wednesday, April 22 at 4:00 pm (UTC+2)<\/strong>, we will open Oficinas Mazarredo II<\/strong> for investment \u2013 the continuation of a transaction<\/a> already familiar to Urbanitae investors.<\/p>\n

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Following the success of the first tranche, the sponsor has requested to increase Urbanitae\u2019s participation by \u20ac1,220,000<\/strong>, bringing the total to \u20ac4,220,000<\/strong>. This will allow more investors to take part in a strategy focused on the acquisition, repositioning and subsequent sale of an office asset in central Madrid.<\/p>\n

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Continuation of an existing transaction<\/h2>\n

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Oficinas Mazarredo II<\/a> does not represent a change in the investment thesis, but rather a ticket increase<\/strong> following the strong initial close of the deal. The project logic remains the same: acquire an office building with below-market rents, implement targeted improvements, stabilise the asset and ultimately sell it to an institutional investor.<\/p>\n

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There is, however, one relevant adjustment to the structure compared to the initial plan. While the original approach contemplated acquiring the company that owns the asset, after legal and tax analysis it was decided to purchase the property directly<\/strong>. This allows the transaction to be structured through a new, clean SPV<\/strong>, simplifying the setup and reducing potential contingencies.<\/p>\n

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An office building near the Royal Palace<\/h2>\n

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The asset is located at 7 Mazarredo Street, in the Arganzuela district, within the M-30 ring road. It is a fully independent office<\/a> building with a total built area of 3,967 sqm, distributed across a basement, ground floor and three upper floors.<\/p>\n

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The property was built in 1930 and fully refurbished in 2017<\/strong>, and has held a tertiary\/office use licence since 2000.<\/p>\n

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One of the key strengths of the project is its location. The building is very close to the Royal Palace, Almudena Cathedral and the former Google campus, in a central, established and well-connected area. Nearby transport links include Puerta del \u00c1ngel, \u00d3pera and Pr\u00edncipe P\u00edo stations, as well as numerous bus lines.<\/p>\n

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The opportunity: below-market rents in a prime location<\/h2>\n

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The asset is currently leased and generating income, but at a rent level below market<\/strong>. This is where the value creation opportunity lies.<\/p>\n

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The current tenant\u2019s lease \u2013 one of the world\u2019s leading flexible workspace operators \u2013 expires in June 2027<\/strong>. From that point, the strategy contemplates two options:<\/p>\n

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