Zona Tetuán - Valdeacederas 2,906 SF Retail Condo Unit Offered at $1,419,176 in Tetuán, Madrid 28020

Commercial space with a 5.85% yield.  
Leased to two operators.

Ref. 922

A commercial property is offered for sale with a profitability of 5.85%. The property is currently divided into two separate spaces with distinct activities: a karaoke venue and a bar-cafeteria with a closed terrace. Both spaces have been leased to the same operator for the past 10 years under a current contract with a monthly rent of €5,980 + VAT, which has five years remaining. The property holds valid definitive licenses and is fully adapted for individuals with reduced mobility.

There is also an opportunity to optimize rental income: the tenant has expressed willingness to relinquish the bar and terrace area to the owner, maintaining only the karaoke operation under a new 10-year contract with a monthly rent of €3,800. In this scenario, the bar space could be independently leased for €3,000, with identified demand, increasing the combined rent to €6,800 and raising the net profitability to approximately 6.66%.

The location is particularly attractive for both activities, situated across from the Plaza de Castilla courthouses and near the State Lottery offices and several office buildings. The area is well-established for hospitality businesses, with notable operators such as O’Cafú (Grupo La Penela), Bárbara 22, Casa Sotero, Casa Juan, Viena Capellanes, and Los Arroces de Segis. The property offers 214 m² of usable space on the ground floor, plus an additional 46 m² on the first floor designated for storage, restrooms, and an office. The karaoke venue is soundproofed and holds an activity license allowing operation until 5:00 AM, making it the only venue in the area with such hours. The terrace includes an enclosed area for 15 tables as well as an open space for 6 tables.