Having sold No 80A, South Mall (Hibernian House) for over €3m to an investor, Downing Commercial, jointly with JLL, are now selling No 13, and they describe it as a trophy buy — albeit at a fraction of their last Mall office-investment sale price: they are selling for a private pension fund.
No 13 had been let to Bank of Ireland on a long lease, but now in on a short-term occupancy is University College Cork, who’ve relocated some downtown research activities to the Mall.
UCC is leasing the 3,768 sq ft building on a five-year lease, from April last year, and there’s a break option in 2017.
It is currently producing €45,000 a year, and is priced at €495,000 by the joint agents.
“This is an excellent opportunity to acquire a prime, city-centre trophy office investment,” says Anthony Quinlan of Downing Commercial, who also says the building has been well-maintained.
It’s an imposing 19th century building, with distinctive stucco facade, has retained, internal period features, and is near a range of professional-services offices, such as PWC, KPMG, Grant Thornton, and banks such as BofI and AIB
“This is an opportunity to acquire a high-profile building located in the most distinguished address in Cork City. An investment of this size should appeal to a range of buyers and, with the short-term nature of the lease, offers future potential for owner-occupiers looking for a landmark presence in the city centre,” say the selling agents.
“Investor demand remains strong in the Cork market, particularly for well-located assets with strong tenants,” they add.
The €495,000 price reflects a net initial yield of 8.7% and a capital value of €131 psf.