Another neighbour said the three teenagers were well-known in the community and so was the victim.
"They've definitely targeted him. Everyone knows him."
Police said the man was knocked to the ground, assaulted and then tied up while the two offenders allegedly went through his house, took the keys to the victim's two cars, a Ford Falcon and a Ford ute, and fled in the vehicles.
The elderly man managed to free himself and ran to a neighbour's home to raise the alarm.
Police were called and a patrol car noticed the stolen cars driving south on State Highway 1.
The Ford Falcon was stopped with road spikes near the Johnstone's Hill Tunnel and two offenders were arrested at the scene.
A short time later, a Motorway Patrol unit located and stopped the Ford ute, and arrested the third.
The victim was taken to hospital at around 11pm for a check-up. Police believed he did not suffer any serious injuries.