A fully-let prominent office building in a prime Dublin location has come to the market seeking €45 million.
The building, 87-88 Harcourt Street, Dublin 2, is entirely occupied by Byrne Wallace, one of Ireland’s largest law firms, on a 25-year lease from November 2003 with an expiry in November 2028. The lease includes a break option for the tenant in November 2023. If the break is not exercised, the lease is subject to an upward-only rent review. The passing rent equates to € 44.39 per sq ft (excluding car parking), which provides an incoming purchaser with future rental growth prospects.
The guide price at € 45 million reflects a net initial yield of 4.85 per cent (after standard purchasers’ costs) and a capital cost of €875 per sq ft.
Savills has been instructed on behalf of joint receivers, Luke Charleton and Andrew Dolliver of EY-Parthenon, to market the property.
While currently fully let to Byrne Wallace, the building also has potential for expansion, with a feasibility study recently undertaken identifying the possibility to add two additional floors to the rear block, and extending the existing fourth floor for an additional net internal area of 1,375 sq m (14,800sq ft) plus a rooftop garden.
Distinctive design
The property is of a distinctive design with a converted Georgian office to the front. The building benefits from extensive frontage on to Harcourt Street and features a unique, copper-clad roof and a granite-pillared portico entrance. Constructed in the early 2000s, the modern section of the building to the rear benefits from natural light on all floors with views over the renowned Iveagh Gardens.
There is basement car parking for 46 cars which is accessed via a one-way system from Clonmel Street with separate car lifts for access and egress.
Fergus O’Farrell of Savills says: “87-88 Harcourt Street presents an exciting opportunity for investors to acquire a prime and unique office investment of scale in Dublin’s city centre.”
