Coffee shop to go: Prime investment on Dawson Street for €3.8m

Investors looking for a foothold in what is arguably Dublin city centre's most sought-after location will be interested in the sale of Dawson House.

Located at 29-30 Dawson Street, the property is being offered to the market by agent Colliers at a guide price of €3.8 million. The investment is fully let and producing total rental income of €263,000 per annum, giving the prospective purchaser the opportunity to secure a net initial yield of 6.29 per cent. The weighted average unexpired lease term (Wault) meanwhile is 6.3 years to the earliest break option.

Caffé Nero pay a rent of €150,000 per annum, occupying the ground floor and basement, under a 35-year lease, expiring in August 2030. The lease allows for upwards-only rent review provisions.

The first, second and third floors are in office use and held under three separate leases. The total passing rent here is €100,000 per annum. Chartered surveying firm, Bagnall Doyle McMahon occupies the first floor on a 15-year lease from January 2018 with a tenant break option in December 2023. Property management company, BPL Management Ltd, occupies the second floor under a 10-year lease from October 2016 with a tenant break option in October 2022. Corporate hospitality and event specialists, East Coast Adventures, occupies the third floor again under a 10-year lease, expiring in June 2027.

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The penthouse floor comprises a spacious apartment, producing €13,000 per annum.

The five-storey, over-basement property extends to 6,434sq ft (598sq m). The upper floors are accessed via a separate entrance lobby off Dawson Street. The offices comprise self-contained accommodation on each floor, along with their own toilet and kitchen facilities. The office floor plates extend to a net internal area of 1,095 sq ft (102sq m). Caffé Nero occupies a floor plate of 1,500sq ft (139sqm) on the ground floor and a further 926 sq ft (86sq m) of ancillary accommodation in the basement.

Number 29-30 Dawson Street occupies a prime location 300 metres from Grafton Street, Dublin's foremost shopping thoroughfare, and is a short walk to the offices of several large-scale corporate occupiers including AIB, Barclays, Goshawk, Davy, and Maples Group, and the gates of Leinster House on Kildare Street.

Michele McGarry of Colliers capital markets division says “29-30 Dawson Street is a rare find and no doubt will appeal to a wide array of investors. This trophy asset gives investors the opportunity to acquire a piece of real estate in Dublin city’s most desirable location. We are seeing strong demand from private investors for quality investment opportunities in the face of very limited supply”.