Savills has placed Marshalsea, Merchant’s Quay on the market with a guide price of €23.5 million. The investment offers purchasers the opportunity to acquire an office block 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 €1.45m equating the guide price of €23.5 million to a net initial yield of 5.59% (after standard purchasers’ costs) and a price per square foot of €542.
The office block extends to 43,335 sq ft over ground and 4 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 / 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% occupied with circa 70% of the floor area occupied by State backed / NGO organisations.
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 commented:
“Marshalsea presents investors with the opportunity to acquire a recently refurbished income producing office block in an excellent location along the River Liffey.”
Marshalsea sits along Merchant’s Quay in Dublin 8. It is conveniently located within walking distance to Temple Bar, College Green, Henry Street, Grafton Street and Smithfield Square. The property is well serviced by public transport, with the Four Courts Luas stop located a 5 minute walk away, as well as a Dublin Bus stop just 20m from the property. Heuston and Tara Street train stations are also only a 15 minute walk. Dublin 8 has been the subject of extensive urban regeneration in recent years, with huge investment planned for the next five years. This includes St James’ Gate and Newmarket Square, which will both deliver impressive mixed use commercial and residential schemes, bringing new life to the area.