Block rate for investors in Tralee apartments

THE sale of two residential apartment blocks, set to have rents rise to c €400,000 per annum after imminent reviews, is set to strike a chord with multi-let investors — especially as the blocks in Tralee, Co Kerry, are not in a rent pressure zone and thus are unaffected by the new, rent-limiting measures introduced in recent months by Government.

Block rate for investors in Tralee apartments

Listed for sale at €4.25m are the fully occupied and private investor-owned Riverville House, and Riverweir House, in Oakview Village, about a kilometre north of the Kerry capital off the Brewery Road.

They’re part of a larger 195-unit residential scheme developed between 2005 and 2008, and are now for sale in two blocks, via Cushman & Wakefield in Cork and Limerick, with Sherry FitzGerald New Homes.

Agent Paul Hannon of Sherry FitzGerald New Homes Cork says they can be bought in one lot, or two, at €2.25m each, or €4.5m for the entire.

There’s a current rental income of €360,876 pa from the 46 units, reflecting a current healthy Net Initial Yield (NIY) of 7.69%, but Mr Hanon adds “this will increase to in excess of €400,000 pa or a return of 8.66% in the coming months once all existing letting agreements are renewed”. The mix in the purpose-built blocks has 26 one-bedroom apartments, and 20 two-bedroomed duplexes overall, divided into 13 one-beds and 10 two-beds.

There’s an on-site management/ security office, plus a crèche and Early Years Support facilities. The majority of the units (42) have own-door access, one car space per unit plus visitor parking, fibre-optic networks and electric heating.

Noting the 100% occupancy, the potential for rental growth in the short term and that the sale would not affect tenants, Cushman & Wakefield observe “availability of rental accommodation remains at a record low and demand for these residential units is at a constant, all year round high level due to Oakview Village’s excellent location close to the town centre and Tralee General hospital.”

Limerick-based Cushman & Wakefield’s associate director Ciara McCarthy adds that “opportunities to acquire these types of good quality property assets outside of Dublin have been limited. And, given the residential blocks are not in the designated Residential Pressure Zones (RPZ’s) we expect strong interest from both private and corporate-type purchasers”.

DETAILS: Cushman & Wakefield 061-418111, Sherry FitzGerald New Homes 021- 4273041

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