Landmark office block on Lord Edward Street seeks €6m-plus

Agent Hooke & MacDonald is guiding over €6 million for a fully let landmark office block a stone’s throw from Dublin Castle.

The period building, converted into contemporary offices in 2007, is at 14-16 Lord Edward Street. It is occupied by a number of tenants – including the Irish Film Board, Henegan & Peng Architects, Stay City and the Swatch Group – while the rent roll stands at €476,000.

Let on a floor-by-floor basis, the accommodation is mostly leased on a long-term basis, but some of the leases expire or incorporate break options in 2017/2018.

"While the rental levels vary, the average rent equates to just over €33 per sq ft. This is below the current estimated rental value of the building which is in the region of €535,000 per annum, or an average of €38 per sq ft," says Enda Moore of Hooke & MacDonald.

“All the lettings are on standard institutional leases and each occupier is liable for an annual service for the upkeep and management of the building. Given the growth in office rents that is occurring at present, there is excellent potential for further rental growth given the strategic location and excellent accommodation.”

14-16 Lord Edward Street is an imposing five-storey building of 1,324sq m (14,251sq ft) which has a prominent granite façade and frontage of about 40m to Lord Edward Street and return frontage to Cow’s Lane and Copper Alley. The entrance foyer and communal areas are fitted to a high standard and there is lift access to all floors, along with disabled access.

Mr Moore says this freehold property presents an excellent opportunity for investors to purchase a low-risk city-centre office investment let to a number of good-quality tenants, with excellent prospects for rental and capital growth. Should it make its guide price, the purchaser will secure an initial income yield of 7.6 per cent and a reversionary yield of over 8.5 per cent based on the current estimated market rent values.