Good deal just got better at Cork city’s prime city centre site at Square Deal store
The building on Washington Street, near the Courthouse, UCC and Mercy Hospital, went to the open market just last month, offered by private treaty via Savills, who guided excess €5.75 million as a development play.
On launch, sources suggested the guide appeared strong, but the market has risen and far surpassed that expecatione: the property went to ‘best bids this Monday, and sources say it is now set to sell for c €6.5m, or almost €1m over the guide.
Interest came from expected quarters, such as an educational use and student accommodation given proximity to UCC. However, strongest inquiries came from apartment developers (including student accommodation) and hotel operators, especially from out-of-town investors, and with recent hotel investment activity in Cork showing a pent-up demand for extra hotel beds.
Indicative of resurgent hotel demand was the very recent investment sale of the 191-bed Cork Clarion Hotel by Savills and JL last month, at a record-setting €35.1 million, acquired by the Dalata Group.
That sale drew considerable hotel focus to Cork city centre, while the River Lee Hotel near the Square Deal site sold over a year ago for €25m.
Other new hotels are expected on Sullivans Quay/BAM site, and the Corbett site on South Mall/Parnell Place.
And, after a change of ownership, and the acquisition of the former PJ O’Hea garage site on Patricks Quay, the long-established Metropole Hotel is expected to invest in expansion and upgrades from 2016.
The level of hotel interest in the Square Deal 0.8 acre site on Washington Street came as a bit a surprise, but as negotiations entered final stages this week, it was unclear if the site would go this direction, or be acquired for apartment/retail use as is currently anticipated.
Nearby, sale terms were agreed in September for a cleared 0.8 acre former Esso garage site, with planning for 50 apartments, at €3 million, above its June launch guide via DTZ of €2.5 million.
On the back of that sale, James O’Donovan of Savills billed the Square Deal offers “the latest prime development opportunity” in this city sector, and it could take a higher density development of apartment, with optional ground floor large retail.
The building has been used for furniture sales for 40 years, and a red-brick portion of the centrally-set building dates to 1880 and is a protected structure.
The Square Deal building/block was put up for sale as Square Deal company owners Patrick and Anna Herlihy are set to retire, and a closing down sale has been held.
Proximity to UCC, and to the proposed Brewery Quarter Event Centre on South Main Street, added to the unexpectedly wide mix of inquiries on the building/site.
Permitted new uses are very varied under a general City Centre Commercial Core Area (CCA) zoning, and it also falls within the recent Living City Tax Initiative which permits relief for qualifying expenditure incurred on either residential or specific commercial refurbishment and/or conversion work.
: Savills, 021-4271371
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