After opening on a vendor bid of $750,000, 56 Kepler Street was passed in on a sole bid of $800,000.

Terry Board, of TJ Board and Sons, a division of Burgess Rawson, said negotiations continued with the bidder following the mortgagee auction.

“It was passed in at $800,000 and sold later to the losing bidder at an increased price,” he said.

“It sold to a local identity. They bought it as an investment property.”

The building, located on the corner of Kepler and Koroit streets, is currently leased to the Reunion restaurant, while its upper storey is vacant but would suit commercial or residential accommodation use. More than 40 people attended the auction of the 465-square-metre building, which is zoned Commercial 1.

“It was a good sale,” Mr Board said. “The vendor was happy with the result and the buyer was obviously happy too.”