We had a lovely time in Madrid with our young family. The space is in the center near Sol, accessible to public transit (car parking will be a pain and expensive, especially with kids so plan accordingly if this is your route).
The house is perfect for a dinner party or hanging out at home - a nice balcony, Sonos, and a comfortable space. There are thoughtful design touches.
I've been to Madrid a few times, and this is a place where you have easy access to lots of what Madrid has to offer with a 15m walk. That's a lot to recommend it - Sol doesn't necessarily have a ton of things 'close' but people meet there because it's central and convenient to everything.
You'll enjoy the space and Madrid here.