‘I bought a Jeep dealership’

The Jeep Chrysler Fiat Dodge dealership at Caroline Springs.

A Ballarat investor has traded-in more than $6 million for an investment a little closer to the city, snapping up a property leased to a Jeep dealership.

The Caroline Springs property is also home to Fiat, Chrysler and Dodge vehicles, and features a large car showroom and a service centre.

Leased to a local Jeep franchisee, the property currently returns $503,000 in annual rent, with five years remaining on the lease term.

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CBRE’s Joseph Du Rieu, Kevin Tong, Dylan Kilner and Rorey James marketed the property, which was sold through expressions of interest after attracting interest both locally and internationally.

“At the campaign’s close, we had received seven formal expressions of interest, indicating strong demand for single-tenanted retail investments,” Du Rieu says.

The Jeep Chrysler Fiat Dodge dealership at Caroline Springs.

“Private investors are recognising the value of commercial property offering fixed-term leases of five to 20 years and, in many cases, are viewing this style of asset as a more secure alternative to residential property investments.”

Located on a 2091sqm strata site at 1107 Western Highway, the dealership sits within a larger retail precinct with major tenants including Bunnings Warehouse, Officeworks, Autobarn and Petbarn.

Kilner says properties in the area are in increasing demand.

“The sale reflects a high building rate of $2,893 per square metre – a record for the area and 35% higher than the last sale in the same strata complex.”