Hatch Street building at heart of business district for €2.6m
Property with apartments, fully-let offices offers prospective buyer gross yield of 7.6pc
The office accommodation at 23 Hatch Street Lower is fully-let to Sysco Ltd at a rent of €152,000 pa
Agent Knight Frank is guiding a price of €2.6 million for a well-located Georgian investment property at the heart of Dublin’s business district.
No 23 Hatch Street Lower is a four-storey over lower-ground period property dating back to 1860. Extending to 476sq m (5,124sq ft), the building comprises both commercial and residential accommodation offering a diversified source of income to the prospective investor.
Located at lower ground, ground, first and second floors, the office accommodation extends to 365.54sq m (3,934sq ft). This portion of the property is fully let along with seven carparking spaces to Sysco Limited.
Sysco is Ireland’s largest dedicated Microsoft Dynamics 365 ERP and CRM Provider. The company was set up in 1980 and has more than 30 years experience in the industry. Sysco have been in occupation of the property since 1991 and took a renewed lease from 2013.
The current commercial lease has a term of 20 years from September 1, 2013 and a passing rent of €152,200 which equates to approx. €32.46 per sq ft with parking at €3,500 per space. The lease is subject to standard market rent reviews every five years. There is a mutual landlord and tenant break option on the expiry of the 10th and 15th years of the term subject to 12 months’ notice and a renunciation of renewal executed by the tenant.
In terms of residential accommodation, the building has two residential units situated on the second and third floors respectively.
The second floor apartment is a one-bedroom unit extending to 50.01 sq.m. (538sq ft) to include entrance hall, kitchen, living/dining, bathroom and a double bedroom. The third-floor apartment of 60.59sq m (652sq ft) presents a well laid out two-bedroom unit, with entrance hall, kitchen, living/dining, bathroom and two double bedrooms.
Both apartments are being sold with vacant possession with an estimated rental value of between €43,000 and €45,000 per annum.
Taking an overall estimated rental value of €197,000 per annum, the property’s €2.6 million guide price equates to a gross yield of approximately 7.6 per cent before standard acquisition costs. On a capital value basis it equates to approx. €5,456 per sq.m. (€507 per sq ft) including seven car parking spaces.
The property enjoys a prominent location in Dublin’s central business district, and is within close proximity to a number of major corporate occupiers including Met Life, Arthur Cox, Eversheds Sutherland, Deloitte, Aecom, IDA, Dropbox, EY and Aviva. The building is also within easy walking distance of Grafton Street and St Stephen’s Green.