A block of 27 rented apartments and three ground floor commercial units at the corner of Upper Dominick Street and Mountjoy Street in Dublin 1 goes for sale today at €4.5 million, giving a purchaser a return of 7.96 per cent after standard acquisition costs.
Originally completed and let in 2009, the apartments were developed by Independent TD Mick Wallace and sold by him about 18 months ago.
Sartini Court is close to the Rotunda hospital and the extensive Grangegorman site that will eventually house the various colleges operated by the Dublin Institute of Technology. A new Luas route from St Stephen’s Green to Broombridge will run directly past the apartments when completed in 2017.
The six-storey apartment block includes 25 two-bedroom apartments, two one-bed units and 20 basement car parking spaces. Dessie Kilkenny of Savills is handling the sale.
The block is producing a rental income of €385,800. The commercial accommodation extends to 385sq m (4,144sq ft) and is vacant.
Average rents for two-bedroom units are €1,200 per month but with a noticeable shortage of rental accommodation in the area the selling agent suggests that higher rents may be achieveable on re-letting.
The €4.5 million asking price works out an average value of €162,000 per unit. Savills say with similar units trading at about €200,000 each, the potential was obvious for a purchaser to embark on a break-up-value to capitalise on the investment.
Kilkenny said they expected broad interest in the investment because of the shortage of centrally located multi-family homes and the rent increases now kicking in.