With more and more consideration being given by investors and developers to the conversion of older office stock to residential use, the sale of one of the country’s first and most significant examples of this property type will be watched closely by the market.
Developed by Bain Capital in partnership with Lugus Capital, and with Grayling Properties currently acting as operator, Rathmines House comprises a 110-unit co-living scheme complemented by a range of on-site amenities including a large gym, co-working space, communal lounges, shared kitchens, a coffee dock, and roof terraces.
Located in the heart of Rathmines on the Lower Rathmines Road, the seven-storey property, which served for many years as the home of Rathmines DIT, is being offered to the market by agent Knight Frank at a guide price of €37.75 million. The building, which opened for business as a co-living scheme in 2023, is now fully occupied and generating a gross annual income of €2.7 million. Almost 60 per cent of the building’s residents are under 30 years of age, with 50 per cent of its occupants working in tech, finance and professional services nearby in Dublin’s central business district and docklands.
Should a sale of the investment proceed at the guide price, the new owner stands to secure a 5 per cent net initial yield, after standard purchaser’s costs of 4.46 per cent applicable to residential assets.
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Tim MacMahon and Sean Molony of Knight Frank say: “This is a rare opportunity to purchase one of very few income-producing co-living schemes in Dublin, where demand for this product type is exceptionally high.”
