Cedofeita, Viana do Castelo

Situated on Rua da Conceio, in the vibrant heart of Portos UNESCO World Heritage Zone, this fully renovated mixed-use building presents a compelling opportunity for investors seeking both stabilized cash flow and value-add upside in one of Europes most dynamic real estate markets.The property comprises three short-term rental units with active STR licenses, one protected long-term residential lease, and a ground-floor commercial space secured by a 10-year rental contractoffering a well-balanced income stream with diversified tenancy. The structure has been fully restored to modern standards while preserving the charm of its original architecture.With Porto continuing its rapid urban renaissance and Portugal ranking high on the radar of international investors, this asset offers a strategic blend of secure yield today and strong potential for appreciation in the medium term. Opportunities like thisoffering location, licensing, and flexibilityrarely come to market in such a prime and historic setting.FINANCIAL SUMMARY24 (Transition Year):Effective Income: 181, 527Management: Owner-operated JanJul, outsourced AugDec2025 (Stabilized Forecast):Projected Gross Income: 190, 603 (+5% YoY, reflecting full-yearprofessional management and peak-season optimization)Projected Net Operating Income: 164, 313Implied Cap Rate (at 2.4M valuation): 6.85%INVESTMENT POTENTIALValue-Add Opportunity: The residential units, while fully operational and revenue-generating, offer clear potential for value creation. Targeted interior upgrades including modernizing bathrooms and refreshing furniture and finishes can elevate guest experience and support ADR (Average Daily Rate) increases of 1020%. With minimal CAPEX, investors can capture a strong uplift in both income and asset valuation, aligning the units with the expectations of todays high-paying short-term rental clientele.Future Upside Additional AL Unit Potential: The long-term residential unit is current leased under a protected contract at 100/month to an elderly couple. While stable, this unit presents significant upside: upon natural lease turnover, the space can be repositioned as an AL-licensed short-term rental, in line with the other three units. This would allow forsubstantial income uplift and optimization of the buildings full rental potential.STR License Advantage: With short-term rental (AL) licenses becoming increasingly restricted in central Porto, this asset stands out as a rare compliant opportunity. Portugal and especially Porto continues to experience surging demand from tourists and digital nomads, driving high occupancy and premium nightly rates. The scarcity of legal AL properties in such prime locations significantly enhances both the operational and capital value of the asset.