Eyewear company Imperial Optical to develop commercial, residential complex

Imperial Optical Jamaica, which sells tested eyewear through a national chain of nine stores, plans to build a three-storey complex on Lady Musgrave Road in Kingston that will see it flirting with the residential real estate market.

The complex will mostly comprise retail space and medical offices, but the top floor is to be developed as a single apartment that’s likely to be a three-bedroom unit that will be rented.

The 90-year-old company is the latest entity seeking value in the real estate sector but General Manager of Imperial Optical Joseph Stockhausen said the complex is not to be seen as a diversification into real estate development.

“It’s a mixed-use space. The first and second floors are commercial, and the upper floor is residential,” said Stockhausen in an interview with the Financial Gleaner on Monday.

The complex is located close to the Hope Road end of Lady Musgrave Road and in the vicinity of Cru Bar. The plot spans half of an acre and Imperial Optical is trying to maximise the space by building upwards.

It is the largest development to be attempted by Imperial, said Stockhausen, adding that the eyewear company has developed other smaller locations in the past for its retail operations.

“We have traditionally owned the locations from which we operate,” he said. The network, however, also includes premises that were acquired and retrofitted for its operations as well as rented space.

Imperial Optical received approval from the central planning authority, National Environment & Planning Agency, NEPA, for the development in June, but now awaits sign-off from the Kingston & St Andrew Municipal Corporation.

Stockhausen said the land was cleared for construction at least three years ago, while the development plans were going through the approval process.

“We are maintaining it as best we can,” he said. He expects construction to last about 18 months after approval.

The size of the investment was not disclosed, only that the complex would cost a “few million” dollars to develop.

“It is a considerable investment for us,” said the GM. “It is always expensive to build, particularly now with the spike in building costs,” he added.

Since the onset of the pandemic, the cost to develop property has risen due to commodity price hikes, inflation, and the rising cost of borrowing.

Several investment companies and other firms have entered or expanded operations in the real estate market at a time when business has been upended by the double whammy of the pandemic and the war being waged by Russia against Ukraine. But Stockhausen said commercial activity has held steady for the eyewear company.

Imperial Optical does eye tests and sells prescription lenses and imported frames in its optical centres that double as retail showrooms, but it also owns labs in which it manufactures lenses.

Stockhausen said Imperial’s operations fared well during the pandemic, with sales holding up.

“We didn’t have a supply chain problem. And our business has remained stable even during COVID-19,” he said, noting that the company utilises air transport and therefore suffered less disruption than companies shipping cargo by sea.

“We sell a medical device. Obviously, there is a fashion element to it and we are appealing to tastes. But no matter your walk of life, it eventually becomes difficult to read and function at your best [without glasses],” he said.

“We have been in Jamaica over 90 years. It was started by a Canadian who came to Jamaica in 1930s, and we have a long history here. All I can say is, there is no economy right now that is doing particularly well. Everywhere is having challenges, but we are in it for the long term,” he added.

Five of the current nine Imperial Optical locations are in Kingston, while the others are single operations in the urban centres of Spanish Town, May Pen, Mandeville and Montego Bay. The company plans to set up its tenth branch at the mixed-use complex, where the ground floor will be utilised for its retail operation, while the second floor will be provide office space for the orthopaedists, and ophthalmologists that work with the company.

The top floor will be a single, large multi-bedroom apartment that Imperial Optical plans to place on the rental market. The details of the size of the apartment are still being finalised, but the other two floors are expected to span a combined 6,000 square feet.

Stockhausen said the new complex planned for the Lady Musgrave area should not be viewed as Imperial Optical entering into real estate development. It would, however, represent the company’s foray into residential real estate.

Over its decades in business, the company has remained focused on eyewear.

“Typically, we do not like to rent. We shy away from it. This is a one-off situation that we took advantage of,” said Stockhausen. “We sell eyeglasses that’s what we know and this is just a one off. It is not like you will be hearing about Imperial Optical real estate company. It is just a one-off.”

steven.jackson@gleanerjm.com