A Navarrese family office invests €1.5M in commercial premises at Elkano Street, leased to Dr. Bloom since April 2023.
In a notable transaction that underscores the dynamic nature of the Basque real estate market, a Navarrese family office has successfully acquired a commercial property in the bustling city of San Sebastián for a sum exceeding 1.5 million euros. This prime asset, strategically situated at number 2 Elkano Street—where it elegantly intersects with the vibrant Alameda del Boulevard—has been under the stewardship of Dr. Bloom since April 2023.
The premises, boasting a generous floor area of 100 square meters, are nestled within one of the city’s most frequented pedestrian zones, a veritable artery of urban activity in the capital of the province of Guipúzcoa. The property, characterized by its five prominent window arches and a distinctive chamfer, resides within a prototypical building that exemplifies the romantic architectural style prevalent in San Sebastián.
This transaction, orchestrated with the guidance of Areizaga Inmobiliaria, has yielded a net return exceeding 4.5% per annum, a figure that, while respectable, reflects the broader trends in the commercial real estate sector. Indeed, investment activities in this segment have exhibited a surprising dearth throughout 2024, both nationally and specifically within San Sebastián. This stagnation can be attributed to a gradual decline in interest rates, which has created a chasm between the selling prices that property owners are willing to accept and the returns that prospective investors anticipate.
Nevertheless, it is worth noting that when opportunities arise in prime locations or involve properties with distinctive architectural features, the potential for alignment between sellers and buyers remains viable. This is particularly relevant as macroeconomic indicators continue to exhibit a positive trajectory, suggesting that the market may yet find its equilibrium amidst the complexities of contemporary investment landscapes.
