After more than 20 years under the same ownership, Warrnambool's long-running accommodation business the Gallery Apartments has sold for $3.8million.
Ray White Warrnambool sales executive Leanne Mugavin said there were two components to the sale of 206 Lava Street, the freehold and the business.
The property was sold via expressions of interest and attracted offers from both local and out-of-town buyers.
Ms Mugavin said a Warrnambool organisation purchased the long-running accommodation business and it would continue to operate in its current format.
"They were looking to diversify and saw it as a great opportunity to do that," Ms Mugavin said.
She said the freehold consisted of six self-contained apartments - five two-bedroom apartments and a deluxe spa suite.
Ms Mugavin said it was a very successful long-term business which ran at 80 per cent occupancy 12 months of the year and had done so over many years.
"Locals have long held it in high regard and it's been very well known as a very successful business," Ms Mugavin said.
She said the modern accommodation it offered was unique in the central business district.
"This is high-end accommodation and there's nothing that compares to it in inner Warrnambool, that's in walking distance to the amenities and the main street, which is why it's so sought after.
"(Former owners) Heather and Brett Jensen ran a good operation. Nothing was ever left unattended and it was constantly updated. The results speak for themselves really.
"Brett and Heather Jensen bought the block and built the development 23 years ago and have ran it ever since.
"The (new owners) intention is to continue on the good work of Brett and Heather and run it as a short-term holiday option. Heather will retire. It's a well-earnt retirement and Brett will continue to run his other businesses."
Ms Mugavin said it was a great result.
"Everyone is very happy and the vendors are very happy. It's a great outcome."
She said the sale continued to highlight the strength of the Warrnambool market.
"I think overall there's been an enormous confidence boost in Warrnambool and not just in the residential, but also the commercial sector," she said.
"We're seeing national companies want to have a presence in Warrnambool that we've never seen before.
"I think accommodation in Warrnambool, since we came out of COVID, has bounced back very, very strong.
"Warrnambool has been very strong and there's a lot of confidence in Warrnambool which we all know."
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