A pre-let Dublin 2 building due for completion in January that will produce a rent roll of about €1.383 million is on the market through Knight Frank for €25.5 million. This price level would reflect a net initial yield of about 5 per cent.
The Lennox building, which is being developed by Paddy McKillen Jr and Derek McGrath, is at the corner of South Richmond Street and Lennox Street. It extends to 3,060sq m (32,938sq ft) over five floors, has eight car parking spaces and 48 bicycle spaces.
The property features leisure and ancillary restaurant use at lower ground level, restaurant use and office entrance reception lobby at ground level, and third generation office space (1,858sq m/20,000sq ft) at first, second and third floor levels.
It is pre-let to Iconic Offices who will occupy the office and leisure space on a 25-year term, with break options in years 12 and 18. A rent of €565 per sq m (€52.50 per sq ft) has been agreed on the office space, and €242 per sq m (€22.50 per sq ft) on the leisure area. The letting includes the car parking at €3,000 per space.
The 556sq m (5,985sq ft) ground floor restaurant and 141sq m (1,518sq ft) ancillary accommodation at lower ground level is being rented by Press Up Entertainment Group at €240,000 per annum on a 20-year lease, with a break option in year 10.
This part of Portobello is within walking distance of Harcourt and Hatch Streets and minutes from the Grand Canal. Across the road the Charlemont Square development with more than 20,000sq m (215,278sq ft) of offices and 263 residential units is under construction.
The 0.35-acre site was acquired in 2017 after guiding €7 million. The vendor, Marlet, paid just €3 million for the site in 2015.
According to the agent, the investment is already attracting the interest of European investment funds.