Wednesday 17 July 2019

Two city-centre buildings offer income prospects

Dublin 1 property might suit owner occupier

Central: 4 O'Connell Street
Central: 4 O'Connell Street
23 Lower Hatch Street
Donal Buckley

Donal Buckley

Knight Frank is bringing a choice of two Dublin city centre properties to the market in separate lots whose guide prices range from €1.5m.

The most valuable of them is a mixed-use Georgian premises at 23 Hatch Street Lower, Dublin 2, with a €2.65m guide price. The other is 4 O'Connell Street, Dublin 1, which is guided at €1.5m and as it is vacant it could also appeal to owner occupiers.

The mixed-use premises at 23 Hatch Street Lower extends to 5,124 sq ft over four storeys plus a lower ground level. Its offices extend to 3,934 sq ft at lower ground, ground, first and second-floor levels and are fully let to Sysco Limited. They produce a current rent of €152,000 per annum. Two residential units on the upper floors are vacant and comprise one-bedroom and two-bedroom units.

Agent Ross Fogarty of Knight Frank estimates that they could generate annual rents in the region of €43,000-€45,000 per annum.

His guide price of €2.65m and based on potential rents of €197,000 could deliver a gross yield of 7.6pc before acquisition costs. On a capital value basis, it equates to €507 per sq ft and comes with seven car spaces. Its vendor is a private investor.

The vacant property at 4 O'Connell Street, Dublin 1, is a five-storey over-basement, mid-terraced building extending to 310 sq m (3,350 sq ft) and is suitable for retail and office use. It has been fully refurbished to a high standard with upgraded lighting, fire safety and decorative finishes.

The retail elements extend to 1,370 sq ft and comprise a regular-shaped ground-floor shop with a new glazed display shopfront as well as a basement.

Mr Fogarty says the property should appeal to retailers and service businesses including restaurants, financial services, travel advisors, tourist-related services and educational uses.

"The investment is an ideal size for a private buyer looking for a secure investment, with a potential rent roll of €100,000-€120,000 per annum," he adds.

Separate access is provided to the upper floors from O'Connell Street, with direct access also available from the ground-floor shop. The building therefore offers the flexibility for either single or multiple occupancy.

With a guide price of €1.5m, it is also being sold by private investors.

The property is located on the east side of O'Connell Street, close to the junction with Henry Street/North Earl Street and the O'Connell Street Luas stop. Mr Fogarty says that this is one of the best trading locations on the street.

Occupiers in the immediate vicinity include Burger King, McDowell's, Carroll's Gifts, Soma, Prosperity Chambers and Paddywagon.

Footfall numbers on O'Connell Street are amongst the highest for Dublin city with over 30.3 million pedestrians recorded in 2018.

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