Zona Tetuán - Valdeacederas 2,906 SF Retail Condo Unit Offered at $1,437,756 in Tetuán, Madrid 28020

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

Ref. 922

A commercial property with a 5.85% yield is available for sale. The property is currently divided into two distinct spaces with separate activities: a karaoke venue and a bar-café with an enclosed terrace. Both spaces have been leased to the same operator for the past 10 years under an active lease agreement, generating a current rent of €5,980 + VAT, with five years remaining on the contract. The property holds valid permanent 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, retaining only the karaoke operation under a new 10-year lease agreement with a rent of €3,800. In this scenario, the bar space could be leased independently for €3,000, with identified demand, increasing the combined rent to €6,800 and raising the net yield 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 a well-established hospitality hub 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 features an enclosure for 15 tables, along with an open area for 6 tables.