In 1873 the railway from Auckland was extended to reach Ellerslie. It is likely that Graham developed part of his property as the 'Ellerslie Zoological Gardens' because of this development. The gardens included flower beds, fountains, a bandstand, dance pavilion and a zoo. This made Ellerslie a popular leisure centre for Aucklanders. In 1886 much of the Graham farm was subdivided for housing. Horse races were already being held in Ellerslie since 1857, but in 1886 the Racing Club acquired a permanent site from the Graham family, including the Zoological Gardens. The racecourse had its own railway station for race days, and was a prominent feature of the Ellerslie area up until its heyday in the 1920s and 1930s.