M50 offices put up for sale with guide price of €6.2m
Published 14/08/2014 | 02:30
Bannon have been retained as agents for an office block off the M50 in Dublin.
The firm have been tasked with selling the property at the entrance to the North Park Development on the north side of the city.
The property is on the market with an asking price of at least €6.2m as an investment.
According to Bannon, at this price it will yield an initial return of 8pc with the opportunity to increase this on letting of vacant space.
The building extends to 5,834 sq m (62,796 sq ft) gross internal area excluding basement with what is described as an "exceptionally high number of car spaces available at a rate of one space per 23 sq m".
There are 252 parking spaces in total.
The J5 Plaza has a current passing income of €518,463 with the HSE contributing more than three quarters of this rent.
The remaining tenants include the Special Olympics, Fehily Timoney Engineering Consultants and Kavanagh Accountants.
The overall rent roll breaks down at less than €10 per sq ft and €500 per car space. With such low levels, the agents believe there is considerable reversionary potential.
"Following the recent upgrade of all common areas there is an immediate opportunity to increase the return on letting the 29pc vacant accommodation," Bannon add.
The property was built by McDermott & O'Farrell and designed by Frank Crowley Architects in 2008. The design incorporates six escape stair cores allowing for "maximum internal sub-division and self-contained suites".
Katie Williams of Bannon believes that with the improving prospects of Dublin's office market, low average passing rent and proximity to the M50 and airport, she is "expecting considerable interest in the latest sale."
J5 Plaza will likely attract a number of potential buyers who are seeking to widen their portfolio out beyond the core Dublin city centre.
While yields are tightening considerably in the city, there are still significant opportunities available further out from the centre of Dublin.
A number of players have begun to assess property around the M50 in particular. Hibernia REIT has been active, buying the Gateway Site at Newlands Cross for less than 10pc of what it changed hands for during the boom.
The REIT paid 10m for the site - a 93pc discount on the price it sold for in May 2006, when it was purchased for €107m by Dublin brothers Gregory and Anthony Alkens.