US investor buys Lord Edward St block
14-16 Lord Edward Street: producing a rent roll of €476,000
An American investor has paid €7.1 million – €1 million above the guide price – for a landmark office block virtually opposite Dublin Castle at 14-16 Lord Edward Street.
The period building, converted into contemporary offices in 2007, is currently producing a rent roll of €476,000 from six tenants including the Irish Film Board, Henegan & Peng Architects, Stay City and the Swatch Group.
The new owner will get an initial yield of 6.4 per cent on his investment.
Let on a floor-by-floor basis, the accommodation is mostly leased on a long term basis but some of the leases expire, or incorporate break options, in 2017 and 2018.
Though the rent levels average out at just over €353 per sq m (€33 per sq ft), Enda Moore of selling agent Hooke & MacDonald has estimated the average rents should be €409 per sq m (€38 per sq ft), equating to a rent roll of €535,000.
Each of the tenants is liable for an annual service charge for the upkeep and management of the building.
The block has an impressive entrance foyer along with a lift access to all floors and a disabled access.