Agents TWM are seeking €2.7m for an attractive property suitable for both investors and developers at the junction of Townsend Street and Creighton Street in the heart of Dublin city centre’s thriving South Dock area.
Located directly opposite Hibernia Reit’s 121,000 sq ft Windmill Lane (1WML) development, the property comprises two adjoining buildings. One is a modern three-storey building occupied by the Dublin South East Community Training Centre, while the corner property is a more traditional structure occupied by Darmody Architecture. The two tenancies deliver a combined annual rental income of €143,000 (€125,609.75 excluding VAT).
Potential purchasers will be interested to know that both leases contain annual break options in favour of the landlord, allowing a new owner to consider either a redevelopment or indeed to occupy themselves. With rents in the adjoining 1WML development reportedly at €55 per sq ft, the average rent for 88-92 Townsend Street (at €26 per sq ft) provides scope for the potential purchaser of the property to increase rents significantly.
Planning permission was previously obtained for a redevelopment and extension of the property. While this permission has since expired, Darmody Architecture has designed a scheme in keeping with the new adjoining developments showing the potential for a development of approximately 13,680 sq ft.
The property’s €2.7m price reflects a capital value of just €503 per sq ft, while its current low rent offers a net initial yield of 4.3pc, which should increase significantly through rent review or reletting.