Savills has placed office block Marshalsea, Merchant’s Quay, Dublin on the market with a guide price of €23.5 million.
The office block is in a suburb city centre location with impressive frontage onto the River Liffey. The building is multi-let to nine tenants with over five years weighted unexpired lease term.
The annual rent roll in Marshalsea is €1.45 million equating the guide price of €23.5 million to a net initial yield of 5.59 per cent (after standard purchasers’ costs) and a price per square foot of €542.
The office block extends to 43,335 sq ft over ground and four upper floors and includes 70 car parking spaces in the adjoining multi-storey car park, accessed from Cook Street.
Marshalsea sits across the River Liffey from the Four Courts and benefits from 27.5m of river frontage.
Marshalsea was acquired in April 2019 as part of the overall Merchants Quay Portfolio. Since the time of acquisition, a significant refurbishment programme was undertaken which included landscaping and planting of the courtyards, reroofing, new bathroom and office fitouts and refurbishment of the reception and stairwell.
Leasing activity since acquisition included a regear of a lease with Dublin City Council along with new leases to the Irish Motor Neurone Disease Association, Microchip Technology, National Advocacy Service and GCS Recruitment. The building is now 100 per cent occupied with circa 70 per cent of the floor area occupied by State backed / NGO organisations.
Savills said: “Marshalsea is now occupied by nine tenants with over half of the income deriving from a lease to BDO (sub-let to the HSE) with 6.3 years left to expiry and subject to an upward only rent review in January 2022. The average passing rent in the building is €31.10 per square foot (excluding car parking).
“The promoters are continuing with refurbishment works across the remaining buildings in the portfolio and have a number of leases currently at legal stage and are experiencing good demand and an encouraging level of enquiries for office space.
“Marshalsea has potential for further redevelopment with a feasibility conducted to add two floors to the building bringing the total area to 64,659 sq ft (GIA).”
Fergus O’Farrell of Savills added: “Marshalsea presents investors with the opportunity to acquire a recently refurbished income producing office block in an excellent location along the River Liffey.”