Peter Stevens Auto Dealerships sold its prominent 7.4 hectare Ballarat Central car yard to a local investor on a leaseback, banking $8.7 million.
The 615 Midland Highway property contains a 4561 square metre showroom which in 2017 underwent a $5.1 million renovation.
Peter Stevens has operated in the historic town since 1972.
The Motorworld yard trades Nissans, Hyundais, MGs and (Dodge) RAMs.
At the busy south west corner of Howitt Street, some 31,400 vehicles are estimated to pass the dealership daily.
A Mitre 10 hardware store and service station, neighbour it while two service stations are across the road.
The occupier signed a 10-year lease with a 10-year renewal option prior to listing the Ballarat Central yard.
Based on the annual rent ($540,000 net, ex-GST), the investment is selling on a 6.2 per cent yield.
Mr Lewis said the transaction is the first major one in some time for Ballarat, which is about 116 kilometres, or a 1.5 hour drive, north west of the Melbourne CBD.
It is also one of the few to be made with a China-born, local investor, the executive added.
Mr Lewis described commercial property markets in Ballarat – and Geelong, on Victoria’s Bellarine Peninsula – as red hot right now.
Last month, Preston Motors Group – a formerly public company controlled since 1979 by the Auswild family – listed three Melbourne car yard sites including a modern Epping property tenanted to Mercedes Benz, and which returns annual rent of $841,500.