Now is your chance to put your stamp on one of Melbourne’s most renowned beachside destinations

A rare opportunity to secure an iconic St Kilda hospitality landmark with major redevelopment potential has investors turning their attention to the famed beachside destination.

The home of bar and function venue Lona has hit the market in the heart of the Acland Street precinct, offering buyers a slice of a location that draws two million visitors annually.

But it is 64-66 Acland Street’s redevelopment potential that could be its calling card, with zoning allowing for a four-storey mixed-use construction at one of Melbourne’s most sought-after locales.

Comprising a 617sqm site with 12 metres of street frontage directly opposite McDonald’s, the property includes the 295sqm venue, including a bar and restaurant, with the tenant recently upgrading the remainder of the site into an outdoor garden and entertainment area.

Secured on a five-year lease to 2024, plus an additional five-year option, it will be auctioned at Burgess Rawson’s Investment Portfolio Auction at Crown Casino on Wednesday, March 31.

Beau Coulter, who is marketing the site with colleagues Raoul Holderhead and Zomart He, along with Paul Farrelly from Sutherland-Farrelly, said the property had enormous upside.

“The investment side is good but with the redevelopment potential it’s a very enticing long-term prospect,” Mr Coulter said.

“The zoning allows for a four-storey development plus a basement, subject to council approval, and it’s ideally suited to that, given its 12m frontage to Acland Street, plus additional ROW access from Fawkner Street.”

Mr Coulter said surrounding properties had set a strong precedent for developments of comparable scale.

“The property directly next door was recently developed into mixed-use over four levels. The precedent has been set, so there’s strong impetus to proceed here also.”

“Anyone considering a mixed-use development with retail and apartments upstairs is going to have a pretty good outlook.”

Located just metres from Luna Park, St Kilda Beach and the Palais Theatre, the property currently returns annual net rent of $190,398 plus GST, with favourable net lease terms that see the tenant pay all the usual outgoings, excluding land tax.

Burgess Rawson’s Investment Portfolio Auction will be held in the River Room at Melbourne’s Crown Casino from 10.30am AEDT on Wednesday, March 31.