Investment in legal quarter offers 8.3pc NIY
A SELF-CONTAINED office investment property at Block C, Usher's Court, Dublin 8, is being brought to the market through agents Knight Frank with a guide price in excess of €775,000.
As it is generating €70,000 in annual rent, this could provide a potential investor with an attractive net initial yield (NIY) of about 8.3pc, after standard acquisition cost of 4.46pc.
It comprises a three-storey 1980s office block extending to about 271.55 sq m and benefits from two car parking spaces.
The property is fully let to KOD Lyons Solicitors, who have built a reputation for their work on Irish criminal defence cases and campaigning on human rights activities.
Their 15-year, full repairing and insuring, lease dates from January 2017.
The passing rent equates to about €22.50 per sq ft for the office accommodation, €15 per sq ft for storage areas and €2,500 per car space. The car parking spaces are located in the communal courtyard to the front of the property, and this courtyard is accessed directly off Usher's Quay.
There is a tenant break option exercisable at the end of the fifth year of the term, subject to six months' notice - however, KOD Lyons have been in occupation of the premises since 2004 and are very well established at this location, which is close to the Central Criminal Courts, the Four Courts, the Children's Courts and the Family Law Courts.
Adjoining Usher's Court, but not Block C, is a 0.14-acre site at 29/30 Usher's Quay, which is currently and separately for sale through Knight Frank, with a guide price exceeding €2.75m.
It has planning permission for 27 apartments and commercial space.