The arrival of an investment property for sale at 53 South Mall, in Cork city’s traditional commercial heartland, shows excellent timing: the street’s bouncing back to rude good health.
Evidence of the resurgence in confidence in the commercial boulevard comes this month alone, with the official opening next Monday of the new Maldron Hotel at the Parnell Place end of the South Mall, close to City Hall, while the second office occupiers, KPMG, moved in just this Monday to the brand new JCD office block, at 85 South Mall.
Now, offered at a modest investment bite-size at a price guide of €820,000 is a period-era, immaculate office building, 53 South Mall, occupied for many years by law firm JW O’Donovan, who are to remain on, unaffected by the investment sale.
Agents Mark Kennedy and Margaret Kelleher, of Lisney Cork, describe the upgraded offices as “a prime, and excellent investment property,” with the prospect of a 9% net initial yield.
It’s let to JW O’Donovan, on a 35-year lease from 1987, with just 2.5 years unexpired, at a current rent of €80,000 pa.
The lease incorporates five-yearly, upwards-only rent reviews.
Set at the western end of the South Mall, near the Grand Parade and Electric bar and restaurant, the mid-terraced property is an attractive, self-contained four-storey, four-bay office building. It’s got a good reception, with atrium behind bringing in natural light, a two storey return and a raised ground floor from street level, and extends to 3,600 sq ft.
Current tenants, JW O’Donovan Solicitors, were established 88 years ago, in 1931, and the practice spans commercial law, property, corporate finance, litigation and dispute resolution, to a mix of institutional, commercial and private clients.
According to Lisney, whose own offices are at 1 South Mall, which is currently being refurbished, “the South Mall is benefiting from renewed occupiers, with many properties currently being invested in, refurbished and let.”
Mr Kennedy says No 53’s “fitted to a high standard, with the tenant responsible for repairs, insurance and rates. We expect strong interest, given the building’s prominence and quality covenant being attractive elements of the investment.”