Coffee shop to go: Prime investment on Dawson Street for €3.8m

Dawson House delivering €263,000 in annual rent from tenants led by Caffé Nero

Investors looking for a foothold in what is arguably Dublin city centre's most sought-after location will be interested in the sale of Dawson House.

Located at 29-30 Dawson Street, the property is being offered to the market by agent Colliers at a guide price of €3.8 million. The investment is fully let and producing total rental income of €263,000 per annum, giving the prospective purchaser the opportunity to secure a net initial yield of 6.29 per cent. The weighted average unexpired lease term (Wault) meanwhile is 6.3 years to the earliest break option.

Caffé Nero pay a rent of €150,000 per annum, occupying the ground floor and basement, under a 35-year lease, expiring in August 2030. The lease allows for upwards-only rent review provisions.

The first, second and third floors are in office use and held under three separate leases. The total passing rent here is €100,000 per annum. Chartered surveying firm, Bagnall Doyle McMahon occupies the first floor on a 15-year lease from January 2018 with a tenant break option in December 2023. Property management company, BPL Management Ltd, occupies the second floor under a 10-year lease from October 2016 with a tenant break option in October 2022. Corporate hospitality and event specialists, East Coast Adventures, occupies the third floor again under a 10-year lease, expiring in June 2027.

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The penthouse floor comprises a spacious apartment, producing €13,000 per annum.

The five-storey, over-basement property extends to 6,434sq ft (598sq m). The upper floors are accessed via a separate entrance lobby off Dawson Street. The offices comprise self-contained accommodation on each floor, along with their own toilet and kitchen facilities. The office floor plates extend to a net internal area of 1,095 sq ft (102sq m). Caffé Nero occupies a floor plate of 1,500sq ft (139sqm) on the ground floor and a further 926 sq ft (86sq m) of ancillary accommodation in the basement.

Number 29-30 Dawson Street occupies a prime location 300 metres from Grafton Street, Dublin's foremost shopping thoroughfare, and is a short walk to the offices of several large-scale corporate occupiers including AIB, Barclays, Goshawk, Davy, and Maples Group, and the gates of Leinster House on Kildare Street.

Michele McGarry of Colliers capital markets division says “29-30 Dawson Street is a rare find and no doubt will appeal to a wide array of investors. This trophy asset gives investors the opportunity to acquire a piece of real estate in Dublin city’s most desirable location. We are seeing strong demand from private investors for quality investment opportunities in the face of very limited supply”.

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Acting Property Editor of The Irish Times