Two fully glazed stand-alone restaurants on high-profile sites along the river Liffey campshires at North Wall Quay in Dublin 1 are to be offered for sale by tender at a fraction of their original cost.
Pat Campion of agent HWBC is guiding €350,000 for the J2 Grill & Sushi building and €400,000 for the slightly larger single-storey premises close by that currently is vacant.
Even without taking site values into account, the Dublin Docklands Development Authority (DDDA) spent €1 million about 15 years ago developing each of the two distinctive buildings, which were designed to cater for the dining needs of workers in the adjoining International Financial Services Centre.
The north docks has been substantially transformed in the past decade or so with the development of Spencer Dock and more recently the completion of Convention Centre Dublin and the Point Village.
The North Wall campshire, running from the Custom House down to the Point, originally accommodated lifting cranes for loading and unloading ships but today is noted for its cycle lanes, paved pedestrian walkways, riverside benches and newly planted trees.
Five-yearly rent reviews
The smaller restaurant building extends to 78.96sq m (850sq ft) and is let to Jason's Food Company on a 20-year lease from October 2012 subject to five-yearly upwards or downwards rent reviews in line with the consumer price index. The current rent of €22,000 works out at €25.28 per square foot and the next review is due in 2017. The €350,000 guide price will show an income yield of 6.021 per cent after allowing for normal acquisition costs.
HWBC is guiding €400,000 for the vacant unit, which has a floor area of 107.4sq m (1,156sq ft)
The two restaurants are the latest properties owned by the DDDA to be offered for sale as part of the rundown of the disgraced port authority. HWBC recently completed the sale of three other retail investment properties at Hanover Quay overlooking Grand Canal Square.
The Herbstreet Restaurant, currently paying an abated rent of €65,000, was sold to a private investor for just over €800,000 in a deal that will show a yield of 7.75 per cent.
A ground floor retail premises extending to 85.84sq m (924sq ft) and currently vacant made about €350,000, while another building, let to Bakers Coffee Company, fetched about €600,000.
The split- level unit extends to 153.11sq m (1,648sq ft) and is currently rented at €40,000 a year.
David Carroll of Bannon advised two of the purchasers.
