Len­nox Build­ing hits mar­ket at guide price of €25.5m

Irish Independent - Business Week - - APPOINTMENTS - Ron­ald Quin­lan

Pre-let Por­to­bello prop­erty of­fers 5pc yield

Agent Knight Frank is seek­ing of­fers in ex­cess of €25.5m for the fully pre-let Len­nox Build­ing at the cor­ner of South Rich­mond Street and Len­nox Street in Dublin 2.

The build­ing, which is cur­rently un­der con­struc­tion by de­vel­oper Paddy McKillen Jr’s com­pany, Oak­mount, is due for prac­ti­cal com­ple­tion by the end of Jan­uary 2019. Based on the ask­ing price be­ing sought by the agents, the prospec­tive pur­chaser can ex­pect to se­cure a net ini­tial yield of 5pc fol­low­ing stan­dard ac­qui­si­tion costs of 8.46pc.\

Upon com­ple­tion the Len­nox Build­ing will com­prise a four-storey over lower-ground floor block ex­tend­ing to 3,060 sq m (32,938 sq ft) with eight car spa­ces and 48 bi­cy­cle spa­ces. The prop­erty will fea­ture leisure and an­cil­lary restau­rant use at lower ground level, restau­rant use and of­fice en­trance re­cep­tion lobby at ground level, with third gen­er­a­tion of­fice ac­com­mo­da­tion at first, se­cond and third floor lev­els.

The build­ing is fully pre-let to flex­i­ble workspace provider, Iconic Of­fices, who will oc­cupy the en­tire of­fice and leisure ac­com­mo­da­tion on a term of 25 years, with tenant ter­mi­na­tion op­tions on the ex­piry of years 12 and 18.

A rent of €52.50 per sq ft has been agreed on the of­fice ac­com­mo­da­tion and €22.50 per sq ft on the leisure ac­com­mo­da­tion. The let­ting also in­cludes eight car park­ing spa­ces at €3,000 per an­num per space.

The 556 sq m ground floor restau­rant and 141 sq m an­cil­lary ac­com­mo­da­tion at lower ground level is be­ing taken by the main trad­ing en­tity of Paddy McKillen Jr’s Press Up En­ter­tain­ment Group at €240,000 per an­num.

The lease term is 20 years with a tenant break op­tion at the end of year 10. The Len­nox Build­ing’s com­bined an­nual rental in­come will be €1.383m sub­ject to fi­nal agreed mea­sure­ments.

The sub­ject prop­erty oc­cu­pies a prime po­si­tion on the cor­ner of South Rich­mond Street and Len­nox St in Por­to­bello. The build­ing is lo­cated within a stone’s throw of the es­tab­lished of­fice districts of Har­court St and Hatch Street. It also ben­e­fits from be­ing just two min­utes’ walk from the the Grand Canal, while Cam­den St and Wex­ford St are just a short stroll north­wards, along with the shop­ping dis­trict of Grafton Street and St Stephen’s Green.

Charlemont Square, which sits di­rectly op­po­site the Len­nox Build­ing is one of the Cen­tral Busi­ness Dis­trict’s largest rede­vel­op­ment sites un­der con­struc­tion at present with over 20,000 sq m of of­fices and 263 res­i­den­tial units to be de­liv­ered in to­tal.

In terms of pub­lic trans­port, there is a Dublin Bike sta­tion ad­ja­cent at Por­to­bello Har­bour while 16 Dublin Bus routes, and the Luas Green line at Har­court Street are all to be found within easy reach.

Pre-let:

The Len­nox Build­ing (above and left) oc­cu­pies a prime po­si­tion at the cor­ner of South Rich­mond Street and Len­nox Street in Dublin 2. The prop­erty is be­ing de­vel­oped by de­vel­oper Paddy McKillen Jr’s Oak­mount

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