The renewed popularity of inner city retail investments is expected to lead to an early sale of a multi-tenanted retail and office building in College Green, Dublin 2, which has been put on the market at the request of Nama.
Colm Luddy of CBRE is seeking about €2.4 million for 18-19 College Green, a six-storey over-basement mid-terraced building which is currently producing a rental income of €182,000 a year. At that price the yield will work out at 7.26 per cent.
The building is located in an area undergoing dramatic changes with two former banks already in retail use and a third also about to be used for the same purpose.
The two substantial bank buildings have been converted in recent years for use by Abercrombie & Fitch and a restaurant/bar while the third building is currently being fitted out as a retail fashion store for international trader H&M. The changes are strengthening College Green as a retail destination.
This has already prompted Tesco to open a new convenience store at 18/19 College Green where it is paying a rent of €62,000 for the ground floor and basement.
The 25-year lease from last July is subject to five yearly rent increases in line with the consumer price index. Tesco has the use of 193sq m (2,085sq ft) on the ground floor and a further 138sq m (1,492sq ft) in the basement.
The upper floors are in office use having been let on a 35-year lease from 1991. The current rent of €120,000 has been fixed until 2018 when it will be subject to an upwards-only review.
