If you like people watching, you will love this place! There are three balconies from which you can watch a constant flow of people going into and out of Plaza Mayor and we spent hours we would have otherwise spent in cafes enjoying the scenery from our private retreat. When we did emerge it's centrally located and very walkable to anything you'd want to do in the city.
The apartment was exactly as described and the kitchen made it possible to cook dinner and make coffee! I would highly recommend this place, it enhanced our Madrid visit.