Prime office space and the South Mall, in particular, are rapidly becoming reacquainted.
At the epicentre of office, retail, and cultural renewal in central Cork City, Lisney is bringing to market a building that will likely attract significant interest.
No 1 South Mall is being offered for sale on behalf of receiver, Michael McAteer, of Grant Thornton.
The building sits between South Mall and the southern channel of the River Lee.
Across the river, the face of Albert Quay is quickly changing, with office space being developed and being planned.
Plans are also evolving for the former Capitol cinema site, around the corner on Grand Parade, and the Brewery Quarter regeneration events centre, on the former Beamish & Crawford site, slightly further along.
Things are happening rapidly in the centre of Cork, with a tentative acceptance of a returning, positive vibe.
No 1, South Mall, is one of the most prominent office buildings in Cork’s central business district and is a purpose-built, reinforced-concrete, six-storey office with lift access.
The property has 85 metres of frontage along South Mall and extends to a net floor area of 1,614 sq. m.
The building has a strong roster of tenants. At present, PWC occupies the first, second and fourth floors, paying a rent of €176,200 per annum.
Royal and Sun Alliance occupies the fifth floor, at a rent of €40,000 per annum, and is coming to the end of a five-year lease this year.
The selling agent, Lisney, is the ground-floor occupier, at a rent of €41,986 per annum. Added income from a roof mast brings the total rental stream to €270,186 per annum, exclusive of VAT.
The agent says there is potential to increase this figure to €315k per annum, by letting the building’s third floor. Across the leases, there is a weighted, average unexpired lease term (WAULT) of 4.2 years.
All leases are full repairing and insuring, with the respective tenants responsible for service charges.
The building is in good repair, with all upper-floor windows having been replaced in late 2014. There is double-glazing throughout.
The agent is quoting a price of €2.75 m. That would reflect a net initial yield of 9.4%.
Margaret Kelleher, of Lisney, comments: “This is an excellent opportunity to acquire an office investment with good rental income, from quality tenants, with longer-term, asset-enhancement possibilities as the upper-floor leases expire.”