Hasan and Nicole Rifat's property backs on to the Calder Alternative Highway site, which they have had their eye on since moving to the area four years ago. 

"We want to restore it to a general store and takeaway restaurant and then build houses on the back," Mr Rifat said.

"We want to work with the council to make all the wrongs right and give the locals a shop where they can buy whatever they want."

The couple were the highest bidders at Wednesday's auction, however the property was passed in at $267,000 because it didn't meet the vendor's price. 

But a deal was negotiated later and the Rifats became the new owners. 

In his introduction before the auction, Elders Real Estate auctioneer Martin Skahill said Happy Jacks was "very unique and very interesting".

Mr Skahill said a lot of people would remember the property as a real estate agency and the popular Happy Jacks restaurant before it fell on hard times. 

"Now we're presenting it to you in what I would consider to be a fairly sad state of affairs and condition," he said.

"I'm not to sure how happy our friend Jack would be if he was with us today."