D8 apartment block for €3.2m

There should be keen competition among investors for a Dublin apartment block with a secure income stream that’s new to the market this week through Savills.

The 27 homes and one commercial unit at the Culvert Apartments on the corner of Pim Street and Forbes Lane in Dublin 8 are guiding €3.2 million. If this price is achieved, it will reflect a net initial yield of 9.6 per cent.

The apartments and office unit are currently producing a rent roll of €321,000 per annum, €310,000 of which is from the residential element. There is an eight-year fixed term RAS (Rental Accommodation Scheme) lease in place with Dublin City Council on 23 of the apartments from April 2014 ensuring security of income for investors.

Constructed in 2007, the block includes four duplexes and 23 apartments laid out over five floors. In total there are seven one-beds, 18 two-beds and two three-beds.

The building’s office accommodation, which produces an annual rent of €11,000, extends to 128.71sq m (1,386sq ft) and is at ground floor and mezzanine level.

It is leased on a 15-year term from February 2008 but the tenant has offered up vacant possession should it be required by the incoming purchaser.

Culvert Apartments is adjacent to the Guinness Storehouse and St James' Hospital. Two Luas stops are closeby while several Dublin Bus routes and Heuston station are also within walking distance.