30/07/2014 – Cinco Dias
Drivers heading to Barcelona through the highway starting in Madrid know the building found at 81 Avenida de America street very well. Over the past three years, the property has been undergoing a refurbishment reaching deep into its concrete skeleton. But it gained a tenant.
Insurance firm Axa has come to agrement with family office Torre Rioja on renting the building and converting it into its headquarters. The operation, advised on by CBRE, has been named the largest office rental of the year.
The 23.600 square meter property rises up to five floors. It disposes of an underground garage for 380 cars and another one above the ground level for over 100 vehicles.
According to sources from the sector, renting a square meter in the area costs between 14 and 16 Euros monthly.
The building will be completely finished in March-April next year. Three years ago, Telefonica abandoned the property which now, thanks to the rehabilitation, is considered “the most technically advanced unit in Spain”.
At present, Axa is based in the Camino de Fuente de la Mora complex and the firm expects to leave it definitely in 2016.
Iñigo Enrich, CBRE´s national director for Office Agency, says the operation “proves the looming improvement in Madrid´s office market“. “A deal like this one was unimaginable a few months ago”, he adds.
Torre Rioja, the vendor, has been present on the Spanish market since 1958. The family owns a number of office buildings in Madrid, found at 10 Julian Camarillo and at 22 Mesena streets, a unit sitting near to the highway direction La Coruña, the Torre Rioja building close to the Plaza de Castilla square and the property which now will be rented by Axa. Apart from these, the company holds two 4* hotels and a housing development in Argandas del Rey.
At the moment, the 5-storey, 20.000 square meter building located adjacently to the unit bought by Axa is still occupied by Telefonica that will eventually move out from it in the mid 2015. Then, Torre Rioja will launch refurbishment works.
Original article: Cinco Días (by Alberto Ortín Ramón)
Translation: AURA REE