The location is great, very close to the Royal Palace, Almudena Cathedral, tapas bars, San Miguel Market, etc.
Romulo's tips and suggestions were also very helpful; we tried some nice restaurants and bar de tapas from his listing. San Miguel Market is absolutely fantastic and so it is Chocolatería San Ginés!
However, there were a few things not so great: From the pictures I was expecting a place with lots of natural light, but in fact the loft is located in the basement of the building and it is very dark. There is a public stairway just besides the apartment, and on Saturday night there were people sitting and chatting until very late outside the bedroom which made very difficult to sleep. I would suggest to put some blackout shades on the windows and door to block the street light at night. There are also exposed pipelines on the ceiling that make a lot of noise at night. And the most remarkable: there was a very unpleasant and persistent sewer odour in the whole apartment.
My conclusion: it could be a very good choice if above drawbacks could be solved.