Remuera site with future redevelopment potential

A prominent commercial building with excellent profile to main arterial Great South Road, Remuera, plus favourable underlying zoning conducive to future redevelopment has come to the market, with a new lease in place to the longstanding tenant.

Known as the Lewis Eady building, and located next to the Maserati Auckland dealership, the property at 75 Great South Road is home to the Steinway New Zealand showroom, the Lewis Eady Music School, Forbes cafe and a branch of Maxwell’s Drycleaning.

The retail showroom and music school have been on site since 2001, with the Lewis Eady name well-known and respected in music circles. The business was established by the Eady family in 1880 and has represented Steinway & Sons pianos since. Chiron Group New Zealand acquired Lewis Eady and its associated businesses in late 2019, with a fourth-generation member of the Eady family remaining on as a consultant for the company. Until this acquisition, Lewis Eady was the oldest family-owned and operated music business in Australasia.

The Remuera property is owned by Chiron Group, and on settlement, they will take a new six-year leaseback and a further six-year right of renewal over the property, providing a personal guarantee as head tenant. The property will return an annual net income of $320,000 plus GST. Chiron Group has also agreed to surrender the lease with 24 months’ notice under a demolition clause to provide flexibility and options for developers or owner-occupiers.

Sited on 1,131sqm of freehold land zoned Business – Mixed Use, the two-level 821sqm building has a porte cochère allowing covered access to the main entrance, with the ground floor primarily configured as showroom space. The café and drycleaning businesses are located in retail space on either side of the showroom. The first floor has two separate areas providing a music education studio and professional office space. There are 18 on-site car parks, and the property has a “bankable” 69 percent seismic IEP rating.

Situated just north of the Market Road intersection, the property is in zone for Auckland Boys’ and Epsom Girls’ grammar schools, 100 metres from Remuera train station, close to motorway links, and minutes from Newmarket, Greenlane, and Auckland's CBD.

Tommy Zhang and Alan Haydock of Bayleys are handling the sale of 75 Great South Road, Remuera, with a tender campaign closing 27th November, unless sold prior.

Zhang says this is a strategic, income-generating asset in one of Auckland's most desirable city-fringe suburbs, offering secure cash flow now and redevelopment potential down the line.

“Remuera is always sought after, with commercial assets tending to remain in long-term corporate or intergenerational family ownership, meaning the chance to secure a foothold is a rare occurrence.

“This location has served the music business occupier well, as evidenced by its 25-year track record of occupation. The sub-tenancies are also convenient for the local community, offering services that are in demand.

“While the new lease will provide investors with confidence, the intensive zoning that the Business-Mixed Use designation allows means residential or commercial development is a possible path in due course, given the premium location and scale. The lease’s demolition clause and holding income provide owner-occupiers and developers with a viable pathway to alternate use.”

Haydock says the wider Remuera-Epsom area is seeing significant private investment, which confirms the enduring desirability of the suburb, along with its capacity for more intensive residential development.

“Business – Mixed Use is the dream zoning overlay for developers and owner-occupiers as it allows flexibility and intensification, and with these inner suburbs being supremely accessible and connected transport-wise, it’s very much on developer radars.

“The Alexandra Park mixed-use redevelopment is progressing, while in Mountain Road, the former Mercy Hospital is now Allevia Hospital Epsom, and after a significant expansion and upgrade project, it is considered the country’s most advanced private hospital.

“This level of investment in the area is encouraging for prospective purchasers, and as the Great South Road property we’re selling has the coveted Double Grammar Zone halo, residential development at some stage in the future could reap rewards.”