Over-rented office block in Blackrock

Another Dublin suburban office investment goes for sale today when CBRE seeks a buyer for a well-located block at Temple Road in Blackrock.

Fiona Kennedy of selling agents CBRE is quoting €3.9 million for Avoca Court, the central block on Temple Road, with Maple House and Oyster House on either side.

The building dates from 1990, and is being sold on behalf of a Davy fund at an initial yield of 9.48 per cent.

35 parking spaces

The four-storey over-basement block extends to 1,277sq m (13,748sq ft) and has 35 car spaces in a shared basement car park accessed off Temple Road.

The office space is fully let under four separate tenancies with an average weighted lease period to run of 6.51 years.

3V Transaction Services occupy the ground and second floors under co-terminus leases expiring in 2023.

The first floor is let to Irish Life Assurance and the top floor is occupied by IFG Ireland Management Ltd. The overall rent roll of just over €386,000 equates to €301 per sq m (€28 per sq ft).

At this level the block is over-rented and in today’s market would rent at between €161 and €204 per sq m (€15/€19 per sq ft). Car parking fees are included in the rent.

Fiona Kennedy described Avoca Court as a highly attractive asset “in the popular suburb of Blackrock where both demand and rents are rising due to the lack of high quality office space in the city centre”.