This is the perfect location. Walking distance to just about everything. We tried all kinds of different places and found we had everything we needed just outside the front door. There was a store right across the alley, a full bar right below us, and just about every type of restaurant you can dream of on our street.
My advice would be not to rent a car as you are literally in the middle of everything and parking it would be a nightmare. Also make sure you have the address for the apartment and not the office, I got off the airplane to no data on my cell phone (thanks verizon) and the last email I could open was a check in reminder with the office address on it....guess where I took a taxi from the airport to? Luckily Javi called me and I was able to get the apartment address and all was smooth sailing after that.
As for the apartment itself, everything was as advertised. Everybody had their own bathrooms, living room was spacious, kitchen had everything you need, etc. I would definitely stay here next time we come to Madrid.