Good return for €1.5m at Riverside Grove

New to market this week at €1.5 million via Lisney is a mixed investment, Riverside Grove, with 18 apartments, all fully let, and 18 commercial units, all on two acres.

It has a current income of €200,000, showing a yield of 12%, with scope to increase this by finding tenants for the remaining commercial space.

Riverside Grove comes for sale as a deal is concluding post a tender offer on an unfinished estate of 26 units housing units, fetching well above its initial €2m guide when launched in September by Cohalan Downing, for over €2.5m.

Some of that Cnoc Ard and Cois Abhainn Riverstick development is completed and rented out, and it had most appeal to small builders who’d finish out the schemes and sell on the finished homes.

And, offered a month earlier, in August via Lisney was another incomplete Riverstick development, some nine townhouses and an apartment across the R600 Cork-Kinsale road, guiding €650,000 and selling already for above that for about €800,000 sum to an undisclosed private local investor.

David McCarthy of Lisney says this far more substantial second offer of theirs is a mixed use modern residential and neighbourhood centre/commercial development, in three main blocks, on a site of two acres fronting the main Cork/Kinsale road. It’s 15km south of Cork city, 10km north of Kinsale and is also c 10 kms from the airport.

The 18 apartments are fully occupied, ranging from 700 sq ft one-beds to 1,650 sq ft two bed duplexes, all in one block and producing a rent of €158,000 pa.

The 18 commercial units span over 23,228 sq ft, and half are currently leased, mostly on short term leases and tenants include Brookfield Retail Management, Riverstick Pharmacy, Denis Crowley & Co Chartered Accountants, Finders Inn Foods and Claran Consultants.

Ten of the retail/commercial units are at ground level, together with a creche unit: and, there’s a vacant proposed medical unit in a small detached single storey adjacent building.

Block B is to the side and rear of a petrol filling station and convenience shop, and comprises a takeaway unit at upper ground floor level, three commercial units at lower ground, and two offices overhead. Meanwhile, Block C comprises a detached single storey former car showroom building of 670 sq ft.

Lisney’s David McCarthy and Edward Hanafin are selling all in one lot, guiding €1.5m and they say “this will provide an investor with an immediate net initial yield of 12% with further asset management opportunity and potential to increase the return when tenants are secured for the available accommodation.”

Meanwhile, keen bidding was evident in the sale of 26 houses at Cnoc Ard and Cois Abhainn developments, where six units were completed, four were rented out, and the other 16 were primarily at second fix state and weathertight.

Selling by tender by October 18 CDA agent Jackie Cohalan noted Part V was settled, contributions were up to date, and the guide of €2m was exceeded, likely to have made between €2.5m to €3m

See also separate story p24 on €1.6m Kinsale Road offices and 2.5 acre site at Ballycurreen, with income and development scope

Details: Lisney, 021-4275079; Cohalan Downing, 021-4277717