Lennox Building hits market at guide price of €25.5m
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.
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