Nichols Crowder managing director Matt Nichols sold the vacant Box Hill property on behalf of the Retirement Village Group, which decided it was no longer viable as an aged care facility.
It comprised 38 strata title suites, sold to the government in one line.
Mr Nichols declined to comment on 287 Station Street’s buyer or price, but said 74 enquiries were received.
He said smaller aged care operators are finding it harder to stay financially viable competing against the larger operators, and has called for either political party to acknowledge this – as the country’s baby boomer population increasing start to retire.
Mr Nichols said disused aged care facilities are increasingly finding their way into the hands of student accommodation operators, motel operators, or developers which may propose a traditional apartment or townhouse project.