What once was a ‘mess,’ now is both a tidy and a healthy investment.
Up for sale with a full tenant occupancy, strong rent roll and a price guide of €1.75m is the former Officers’ Mess, from the glory days of Cork’s Ballincollig Murphy Barracks, now a medical centre.
Part of the hugely successful redevelopment of the one-time barracks site, done in the 2000s by O’Flynn Construction, the heritage limestone, brick and slate-roofed building now runs to 7,435sq ft, and has a rental income of €159,169 pa, from eight tenants, predominantly with a medical connection as well as from a legal practice.
Billed as a medical centre investment opportunity by Peter O’Flynn and Siobhán Young of Cushman & Wakefield, with a net yield of 8.4% in prospect at the guide, it’s set in the Ballincollig Town Centre’s Old Quarter district in a town with a fast-growing population, and has tenants on three levels within, with a 100% occupancy.
The mix includes “an all-encompassing clinic and medical centre”, including a pharmacy, GP practice and dental clinic, as well as an audiologist, psychotherapist, a ultrasound facility, a chiropodist and a solicitor’s firm.
Despite its roots going back several centuries, its high-spec renovation and two-storey extension now sees lift access, and HVAC system, air-con, suspended ceilings, and has double glazed sash windows.
Tenants are not affected by the planned sale and the location is advised as “strategic”, being close to the Barrack Square office campus, the Castlest Shopping Centre, Ballincollig’s community nursing unit, and 200 apartments.
Being offered for a private owner since initially developed and after it was sold on by the O’Flynn Group a number of years ago, and at the 8.4% yield (after purchase costs of 8.46%), it’s an attractive investment proposition, says C&W’s Ms Young.
“Given the lack of quality stock available, we expect strong interest levels in this investment which is well situated in a rapidly expanding urban area, now located within the city boundary,’ she states.
Now part of the extended Cork City Council area post-boundary extension, the local authority sees the area continuing to expand as a significnt residential and employment hub in the metropolitan area. Its current population of about 20,000 is expected to come close to 24,000 by 2023, it’s indicated.
This growth “will drive the demand for housing, and services such as schools, leisure and medical centres,” say Cushman & Wakefield.
The agents note its “strategic location,” immediately next to the Barrack Square office campus, Castlewest Shopping Centre (sold this summer to IPU for c €22m), Ballincollig Community Nursing Unit and 200 apartments at The Crescent and The Quadrants.
Meanwhile, the Town Centre’s original developers, the O’Flynn Group are curently developing a new 285,000 office campus, Westfield Office Quarter, on six acres close-by, set between the stand-alone Tesco Extra and the Oriel House hotel. Existing office occupiers loclaly include Dell/EMC and VM Ware, who have c 120,000 sq ft Grade A offices in Barrack Square.
DETAILS: Cushman & Wakefield 021-4275454.