Why the redevelopment of IJzerenleen 22/24 in Mechelen started before construction did
Selling a building is one thing. Making sure the next owner can start with a clear investment case from day one is another.
Avenue advised on the sale of IJzerenleen 22/24 in Mechelen. The building is set for a complete redevelopment, combining approximately 500 m² of retail space on the ground floor with residential units on the upper floors.
But before the redevelopment gets fully underway, one crucial part of the future investment case has already been secured. Avenue signed a new lease with Kruidvat for the commercial space, with the store expected to open in Q4 2026.
That is what makes this transaction interesting. Not simply because retail and residential come together in one building, but because the different steps of the redevelopment reinforce each other.
Mixed use is about more than getting the mix right
When looking at a mixed use redevelopment, much of the attention naturally goes to the end result.
Retail below. Residential above.
But the sequence in which those functions are secured can be just as important.
At IJzerenleen 22/24, the commercial foundation was established early in the process. Kruidvat will occupy approximately 500 m² on the ground floor, giving the new owner clarity on a significant part of the future use of the building.
Meanwhile, the upper floors can be redeveloped into residential units according to their own timeline. The different parts of a mixed use project do not have to be developed simultaneously to start strengthening the investment case.
A strong ground floor does more than generate rent
In mixed use real estate, the commercial ground floor can easily be viewed primarily as a source of rental income. In an urban location, its role goes much further.
The right retailer activates the building at street level, contributes to the commercial fabric of the area and gives the project a recognisable identity from the start. That matters for the retail unit itself, but also for what happens above it.
A successful mixed use development is not simply a collection of retail and residential square metres. The different functions need to work together.
That is why the challenge at IJzerenleen 22/24 was not simply to find a tenant. It was to secure a retailer that matched the location and could make full use of the available commercial space. Kruidvat provided that fit.
Certainty below. Flexibility above.
The residential floors create a different type of opportunity.
Over time, they will be redeveloped into residential units, bringing two different real estate markets together within a single asset. For the new owner, that creates an interesting balance. The commercial component already has a clear future, while the residential component offers flexibility for further value creation.
That combination of certainty and flexibility is one of the reasons mixed use assets can be so compelling. Not because combining several functions automatically creates diversification, but because each part of the building can play a different role within the same investment strategy.
The transaction goes beyond the sale
Avenue’s role in this case therefore extended beyond advising on the sale of the property. By handling both the sale of the entire building and the leasing of the commercial space, two crucial parts of the investment case could be considered together.
Who is the right buyer for the building? Which retailer makes sense for this location?What certainty can already be created today? And which value can still be unlocked tomorrow?
These are not separate real estate questions.
Together, they form one investment strategy.
Getting the sequence right
IJzerenleen 22/24 shows that a redevelopment does not necessarily begin when construction starts. It begins with the decisions that determine what the building can become.
In this case, that means a new owner, a strong commercial tenant on the ground floor and residential potential on the floors above.
The next step is bringing that strategy to life. Kruidvat is expected to open its new store in Q4 2026, while the upper floors will gradually enter their next chapter as well.
Because successful mixed-use redevelopment is not only about choosing the right functions.
It is about getting them in the right order.
Have a building with redevelopment potential?
A sale, commercial lease and residential redevelopment do not have to be treated as separate processes.
Avenue helps owners and investors look at the complete investment case and make the right decisions in the right sequence.
Facing a similar situation? Let’s talk via elena@avenue.eu.