Historic car site goes under hammer

The property has a flexible lease arrangement and could be sold with either vacant possession or a new lease. Photo / Supplied

Facing the hammer next month is a 787sq m freehold site at 450 Great South Rd in the heart of Greenlane's "car sales strip" that has a long history with car dealerships and which has only had two owners since the 1950s.

Home to Eade Cars since 1979, the property will be auctioned on May 19 as part of Bayleys Greater Auckland portfolio through Mike Adams of Bayleys Auckland.

Adams says it represents a rare offering given the tightly-held status of property in the area.

"This site has excellent exposure to busy Great South Rd and, while historically this precinct has been associated with motor vehicle retail sales outlets, we are seeing a changing usage as evidenced by the opening of a new KFC outlet across the road and a proposed 24-hour gym in the neighbourhood," says Adams.

"Commercial property in the Greenlane and Penrose precinct is still highly sought-after and in line with recent trends in other parts of New Zealand, like Lower Hutt and Kaiwharawhara on the fringe of Wellington's CBD, traditional car dealer strips are morphing into broader trade-based retail and showroom usage. "The zoning provides for a number of end-use opportunities and the existing tenant's flexibility on possible lease terms means the property will have appeal for owner occupiers, investors and also for developers."

Owner of the property, former car dealer Graeme Eade, sold his business Eade Cars 10 years ago to then-manager Mark Finn, who still operates from the site. There is a flexible lease arrangement in place and the property could be sold with either vacant possession or a new lease, in liaison with the tenant.

The property includes a modest 72sq m office building to the rear of the site with drive-through access for staff car parking and a small garage and workshop. The building contains a main office to accommodate up to four staff plus two smaller offices, one of which is used as a customer lounge, along with a kitchenette and toilet facilities.

The office building was revamped in the late 1980s and Adams says it is in a "good but dated condition".

A large flat-roofed canopy from the side of the building provides an all-weather parking area.

Graeme Eade had a long association with the site going back to the early 1960s when, as a school boy, he cleaned cars there for dealer and racing car driver Garth Souness. Later, in 1979, Eade opened his own business on the site, sharing the yard space with two other independent dealers before taking over the lease on the entire site a few years later.

Eade says the land was given to Joan Overton as a wedding present by an aunt in 1952. "In those days, it was just a vacant section on the fringes of Auckland and probably only worth a few hundred pounds.

"I recall Mrs Overton telling me that the property first became a car yard after a young chap with the memorable name of Billy McGonegal Blake knocked on her door at home in the late 1950s asking if he could rent the block off her to open a car yard. It was the first in the area I believe."

When Mrs Overton died in 1993, Jan and Graeme Eade, as sitting tenants, bought the site from her estate. Eade says that at the height of the market, when car dealers advertised under the generic destination banner of Boulevard of Cars, there were up to 20 individual dealers in the strip from McDonald's corner in Greenlane to just past the Triangle Service Station.