Melbourne developer Steller has snapped up one of the few remaining large warehouses in South Melbourne for $23.4 million.
The property at 200 Well Street sold with a development permit for a 20-level apartment building with 174 units and ground floor retail spaces.
Lemon Baxter agents Chris Curtain, Nick Bade and Paul O'Sullivan negotiated the deal.
The property was owned by former associates of the Lemon Baxter agency, which still occupies the second floor of the premises.
The ground floor is leased to film production firm Jumbla.
Mr Curtain said the 1543-square-metre property attracted interest from offshore and local developers.
"Despite reports to the contrary, developers are scrambling to secure high quality residential projects to deliver more housing into the market," Mr Curtain said.
City fringe sites, in particular, were a focus as CBD blocks dry up.
Housing support group VincentCare has moved to take advantage of developer interest by offloading two prime landholdings in North Melbourne.
The group will sell 26-274 Abbottsford Street and 68-74A Chapman Street through Savills Australia to fund a new $47 million centre on Flemington Road.
The Chapman Street site has planning permits for 19 townhouses.
The properties are expected to fetch a combined $15 million.