Savills has launched City Square, Cork to the market today at a guide price of €28m. This well-located and established multi-family investment opportunity offers investors an attractive net initial yield of approximately 5.5%.
City Square is a unique residential development with ancillary commercial accommodation, centrally located in Lady’s Well, just approximately 500 metres from Cork City Centre and with extensive frontage onto Watercourse Road. The scheme benefits from easy access to the N20 main Cork to Limerick Road, Cork Opera House and The Jack Lynch Tunnel. The area benefits from excellent transport links which include a regular bus service from Blackpool to Cork City Centre and Kent Train Station is also within walking distance of the development.
The development is designed in three distinct blocks – ranging in height from 2 to 5 storeys – known as The Courtyard, The Plaza and The Gallery. The overall scheme comprises 145 residential units, of which 127 form part of this sale, including a selection of high-specification one, two and three bedroom apartments and duplexes, The development also offers 16 commercial units located at ground and first-floor level with a total of 280 car parking spaces.
With virtually full residential occupancy generating a current overall gross income of approximately €1.815m per annum, and an additional €177,200 per annum from the commercial element, City Square presents a unique opportunity to acquire a hugely successful multifamily investment. Recently achieved rental levels in the scheme include €1,200 per month for 1-bed apartments, €1,500 per month for 2-bed apartments and €1,700 per month for 3-bed apartments offering genuine reversionary potential. The scheme offers potential to grow the income further by securing additional commercial tenancies.
City Square was constructed in 2007 and has the benefit of basement car parking with lift access to all floors, in addition to private internal courtyards offering secluded and appeasing landscaped areas for the residents.
The commercial element of the development extends to approximately 3,471 m² (36,782 ft²), and comprises of 16 units which include retail space, office space and a proposed crèche with the benefit of high visibility and strong passing vehicular and pedestrian traffic from Watercourse Road. Tenants in the scheme at present include a pharmacy, a medical centre and a gym.
Kevin McMahon and Isobel O’Regan of Savills who are handling the sale commented: “The multi-family market has established itself as one of the most sought-after investment mediums within the Irish property sector in recent years. City Square is an excellent value-add multi-family opportunity due to the continually increasing demand for rented accommodation in Cork City Centre. City Square’s impressive appeal is reinforced as the passing rents are considerably below market rent in addition to the income enhancement potential of the commercial accommodation. With few opportunities of this calibre available in the multi-family market in Cork, Savills expect very good interest in this asset.”
