€3.5m for landmark Lafayette Building
The Lafayette Building, one of Dublin’s best known privately owned structures is coming to the market through Bannon with a quoting price of €3.5m.
Redeveloped by Treasury holding in the late 90’s, this striking six storey over basement building dominates the city’s streetscape on the southern side of O’Connell Bridge. It has uninterrupted views over the City’s principle thoroughfare including major city landmarks such as the GPO, The Spire and The O’Connell Statue.
The basement, ground and first floors of the building were let to Manchester United back in 2000, who only occupied the property for a couple a years before withdrawing from Ireland. They still pay their rent of €520,000 p.a but have sub-let the property to the Lafayette Bar and Café who run a night club from the basement and bar from the ground floor.
The second floor and part 3rd floors are separately leased and occupied by The Blood Bank. The remaining upper floors comprise 14 residential units which have already been individually sold off.
The combined income from the building of €625,453 would deliver a prospective purchaser an initial yield of 17%. This return will be dramatically impacted should Manchester United action their break option in August 2015, despite the 9 month outgoings break penalty. However according to agents Bannon this is where the asset management opportunity lies.
Of particular relevance in this regard will be the new Luas ‘Crosscity’ line which will have a stop literally outside the buildings front door. According to Rod Nowlan of Bannon ‘This will be a real game changer for the occupational prospects of the building and this side of Westmoreland Street in general’. Including the break penalty, income will effectively continue to flow form the Manchester United portion of the buildings until mid-2016 which is only months from the anticipated completion of the Luas Cross City Line.
Due to the looped nature of this line this particular stop is likely to be one of the busiest stops on the entire Luas network.
