€16m guide for offices at Earlsfort Terrace
Knight Frank is guiding €16m for an office block in central Dublin.
The firm is seeking a buyer for One Earlsfort Terrace. The building is let in its entirety to law firm Eversheds at a passing rent of €630,000 per annum.
The lease, which has approximately 11 years to run, provides for minimum guaranteed rental uplifts at each review.
Knight Frank describe the building as being located on a "high profile" corner site at the junction of Earlsfort Terrace and Hatch Street and comprises approximately 2,020 sq m (21,750 sq ft) of modern space laid out over six floors. There are 19 parking spaces.
The entrance to the building is through a full height glazed atrium which is shared with the adjoining building. Internally, the offices provide "adaptable and flexible" work space with standard finishes including suspended ceilings with recessed lighting, carpeted floors and fully fitted common areas. The tenant has installed cassette air conditioning.
Planning permission was granted in 2011 for the addition of two floors over the existing five storey buildings. The planning provides for an additional gross floor area of 1,517sqm or so of office accommodation.
The current rent reflects a rate of €25.85 per sq ft - well below current market rates. The rent is subject to review in 2016 with the rent increasing to the higher of €750,000 per annum (€31.45 per sq ft) or the then market rent. With rents of €55.00 to €60.00 per sq ft achieved for Grade A buildings in the area this minimum level is likely to be exceeded, say the agents. There is a further rent review in 2021 with a minimum increase to €850,000 per annum (€36 per sq ft).
The building forms part of the Earlsfort Centre with adjoining occupiers including the Medicine's Board, Arthur Cox, the OPW and the Conrad Hotel. Arthur Cox are to move to a new 120,000 sq ft development on the opposite corner of Hatch Street.
The attraction of the area is the range amenities close by with Grafton Street, Dawson Street, St Stephen's Green as well as Luas and Bus routes all within a short walk.
"With a combination of a prime city centre location and secure long term income the investment is likely to appeal to both domestic and overseas investors. With Eversheds' likely to require further expansion space in the next few years, the opportunity may also appeal to investors or developers," said Knight Frank's Adrian Trueick who is handling the sale.