Urbanitae and Freo Group have acquired an office building located at 7 Mazarredo Street in Madrid from Princeton Real Estate Partners. The transaction was structured through a joint venture formed by both companies.
The property has 3,967 sqm of gross leasable area, distributed across four office floors. It is currently fully leased to Spaces, part of the IWG group, with a lease in effect through June 2027.
The asset is located within the M-30 ring road, near the Royal Palace and the Almudena Cathedral. According to information provided by the companies, the submarket in which it is located has an office vacancy rate of around 2.4%.
The joint venture plans to implement a value-added strategy for the building, with a CapEx investment program aimed at improving its ESG characteristics and repositioning the asset in the market. The goal is to bring rents in line with current levels in Madrid’s office market, in an environment marked by a shortage of supply and rising rents, according to the companies.
The funds contributed by Urbanitae’s investors and their co-investors will be used primarily to finance the acquisition and certain transaction-related costs not covered by the bank.
Garrigues advised the buyers on legal and tax matters; CBRE, on commercial aspects; and Nurbex and Xeito Arquitectura, on technical matters. On the seller’s side, the transaction was advised by VGevers Capital Markets and received legal support from Belda, Bordón y Merodio Abogados.
