Sorrento Country Road store triples price in five years

A Sorrento landmark has chalked a price rise of more than $4.5 million in less than five years. 

The 10-16 Ocean Beach Rd property on 750sq m had been expected to sell for over $6 million on March 10.

The Country Road concept store fetched $7.125 million or almost $1 million above the vendor’s reserve, according to CBRE agent Rorey James.

The red-brick building was once the Post and Telegraph office and postmaster’s quarters.

A long weekend holiday crowd of 250 jammed the sidewalk to watch five buyers bid.

10-16 Ocean Beach Rd, Sorrento, has risen $4.59 million in less than five years.

“There were three more Asian investors present but the bidding rose too quickly for them,” James says.

While the opening bid was $4.5 million, the next bid of $6 million was an attempt to knock out the competition, but three buyers contested until the end.

Most of the bidders have holiday homes in the area and were keen to land an investment property,” James says.

“The buyers are a family from a bayside suburb and intend to hold on to the property for the long term.”

A large long weekend crowd turned out for the auction.

The vendor, former Victorian Cancer Council president Peter Griffin, paid $2.53 million in 2013 for the property.

It is currently leased until 2022 with two further five-year options available.

“The yield of 3.6% is strong for the area and the property was the sixth we have sold in the street in two years,” James says.

Sorrento’s main shopping and cafe strip has grown in popularity.

The building dates back to 1905 and had a multi-million renovation and fitout to open as the first Country Road concept store.

The store, which has won numerous design awards, is located on a busy retail and café strip dubbed “Sorrento Main Street”.

The building has heritage listing which restricts its development potential.

This article from Leader Newspapers first appeared as “Old Sorrento post office lands seven-figure sale”.