AN investment block of 24 modern, purpose built apartments in the heart of the north Cork town of Mallow has come to market as one lot, at an average price of c.€99,000 per unit.
Listed with locally-based agent Michael O’Donovan Snr of Sherry FitzGerald O’Donovan are 24 multi-family units at the Castlegar Apartments complex, a gated scheme with enclosed parking, with the apartments laid out over four blocks, in a spread of three storey buildings.
Guide price is €2.35 million for the 24, and all within in the wholly-owned set up are under the one management, making it a smooth-running, income-earning opportunity for its next owners, says Mr O’Donovan.
The Castlegar units were developed about 10 years ago, as an urban infill development built on a brown field site in Mallow town centre, just to the northern side of the main street, adjoining the town’s main car park. Architect was locally-based Kevin O’Keeffe, for a private developer.
The development is also within walking distance of Mallow railway station, near the garda station. There are 24 underground parking spaces, accessed to the rear of the development via an automated gate.
Apart from income earning potential, the sale could also provide a purchaser with a potential multi-family unit break up opportunity, due to the increase in the buying power of FTBs, leaving options such as break up and/or retaining two blocks and selling two others.
The overall Castlegar scheme included three other blocks of adjacent units, in separate ownership, and which don’t form part of this sale of 24, it’s noted.
Current income is c €170,000, but several are vacant and this Castlegar Apartments offer “has potential rental income of approx €225,000 pa, and at this figure would be yielding in excess of 10% gross”, say the agents, adding at the €2.35m guide “it thus allows potential purchasers to acquire 24, well-located apartments at under €99,000 per unit”.
The agents SFOD, who also have offices in Midleton and Carrigaline, note that two-beds they are currently offering in those towns on an individual basis fetch prices of €175,000/€185,00. They calculate rents at Castlegar in the order of €10,000 pa, and currently on-line rental sites list just nine available Mallow properties, just one of which is an apartment. Mallow is outside the rent-control zones introduced in Cork in the past six months
Accordingly, Mr O’Donovan says this one-lot offer of 16 two-beds and eight one-bed apartments “is an excellent investment opportunity for both institutional and private investors alike”.
Mallow has been designated a “Hub Town Centre” by central government, due to its accessibility to Cork, Dublin, and Limerick by road and rail, its growing population and infrastructural advancements, and with a significant Dairygold expansion currently well advanced.
“In recent years, across Europe and the US but moreover in both Dublin and London, there has been a move towards the commuter areas that are accessible by train,” says Mallow’s Mr O’Donovan.
“This is a concept that will work incredibly well for Mallow, as it is just 20 minutes from Cork by train but also 60 minutes from Limerick and it is just over two hours from Dublin. This should be a huge incentive to both institutional and private investors alike,” he adds. “Mallow has been a key consideration in the accommodation solution for multinational corporations considering its proximity to Cork city with under 25- minute rail and road links.
“Castlegar’s 24 units en bloc is an excellent opportunity to acquire a top-class easily-managed investment portfolio in a town which has been designated a hub town, with an hourly commuter rail connection and set to experience excellent growth in the short term given its hub designation,” he asserts.
Sherry FitzGerald O’Donovan, 022-42651
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