Strategic investment opportunity close to city

Two apartment complex offers in Cork city, and both strongly let, are being offered to investors at sums of €5.5m and €6m-plus apiece.

 Sizeable offers — likely to be out of the reach of many single private investors/pension investors — they are each being pitched for sale prior to the expiry of CGT exemption incentives before year’s end.

Closest to the city centre and the more valuable is the offer of 46 apartments at Elderwood, on the Boreenmanna Road near Crab Lane and schools.

Guided at €6m-plus, it currently earns €475,000 a year from the residential element and if several remaining units were le, t and with expected rental uplift, this would rise to an ERV of €500,000 pa, according to agents Sheila O’Flynn of Sherry FitzGerald, and Peter O’Flynn of DTZ, selling for a private investor. Indicative yield at the quoted price is c7.6%.

The multi-let contemporary-styled development, with strong profile on the Boreenmanna Road near Ballintemple and Ballinlough and 2.5 kms from the city centre, was designed by architect Derek Tynan and built by Supple.

Set on a seven acre site and facilitated by a Section 8 motion at City Hall who bought a number of the houses, it has 100 units in all, a mix of houses, duplexes and apartments.

At one stage, two-bed apartments of 750 sq ft were marketed at €310,000, and three-beds at €345,000.

A small number were sold to private buyers back around 2007/08, and the units now being sold are a mix of two-beds (3) two-bed duplex apartments (15), two-bed garden apartments (15) and 13 three-bed duplex apartments.

Most of the garden and duplex apartments are at Elderwood Avenue, the eastern portion of the development while most of the rest are in a block called Elderwood Park.

Sheila O’Flynn, Head of Residential in Sherry FitzGerald said the units “are of excellent living quality and continue to be popular in the letting market, in one of the strongest residential locations in Cork city.”

DTZ’s Peter O’Flynn predicts interest from a range of investors due to the lot size and quality of the asset, noting contracts will be signed in advance of the expiry to the CGT exemption by year’s end.

“The the long-standing mantra of location, location, location in property investment is now, after market turmoil, added to by passing income and the ability to find new tenants: and, in essence this still comes back to the principal of location and the quality of the asset,” he asserts.

Nearby is Cork Constitution, Páirc Ui Rinn and several schools, and there’s a bus route serving Mahon’s business and retail parks as well as Cork city centre. Most units are own-door, helping to cut down on communal spaces and upkeep, with good car parking.

Meanwhile, out at Carr’s Hill, Douglas, a scheme of 35 units is for sale with a price tag of €5.5 million, via Savills.

The Temple Grove scheme, done by Frinaillais alongside 17 large detached houses in the adjoining Vicarage scheme, priced on launch at up to €1m.

Apartment prices when launched in 2007 were pitched at €295,000 for a 47 sq m one-bed, to €370,000 for a 87 sq m two-bed, with 50 units in all over basement parking. Similar units currently trade at about €185,000 each, so “the potential is obvious for a purchaser to embark on a break-up-value to capitalise further on the opportunity,” say the agents.

“Sales of this nature are very infrequent in that the sale provides a manageable lot size, is fully let with strong potential for rental growth and the option of maintaining the unbroken status of the block, with the underlying potential of the apartments being sold individually,” Savills add.

Finally completed last year, the 35 Temple Grove apartments earn an average of €950 a month for two-beds and are guided at €5.5m to buy, at an average of €157,000, and they earn €395,000 pa, showing a gross yield of 6.89% to new owners.

The mix is predominantly two-beds, with two three bed and two one-beds, all within a short walk of Douglas village, on the old Carrigaline Road facing Douglas Golf Club.


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