The $20m Victorian apartment building in the Highlands Park was built for the highland’s richest man, Glenorchy, and was designed by architect Richard Deakin, who was the architect of the $4.8 billion Olympic Park.
The penthouse, designed by designer and Melbourne architect Chris O’Hara, is one of a few highland apartments on the block to have an outdoor courtyard.
The building has been sold to private equity firm Grosvenor Capital Partners for $18.9 million.
The apartment includes an outdoor balcony and a large open kitchen, with a view overlooking the harbour.
Grosvieor’s chief executive, Ben Smith, said the property was a major asset in the highlands.
“This building is an incredible asset, a massive asset, and an asset that’s going to have enormous long-term value,” he said.
“The area of the building that’s the highest elevation on the whole of the highlanders is very important.”
The property sits in the old Highlands estate, a property which includes the city’s former Highlands School, which has been turned into a multi-use park.
The land that made up the estate was sold in 2015 for $2.8 million, but the land has been earmarked for redevelopment.
The city’s heritage department was informed about the development and has already started to negotiate with developers.
The property is located at 9-11 North Macquarie Street, and is the property of Gros Vieor.
Mr Smith said the developers had secured a buyer who was willing to develop the property.
“We are currently negotiating with an external buyer to make sure we get that done before we proceed with a new development,” he told the ABC.
“It’s a great asset and it’s been a very valuable asset to the area, and it will be a great place to live.”
Mr Smith noted that the property had already been on the market for six months and had a valuation of $25.7m.
“The city is aware of the development but they’re not looking to proceed with any plans at this stage,” he added.
Melbourne is still searching for a buyer for the former Highlanders school, which is a UNESCO World Heritage site and one of the oldest buildings in the city.
A spokeswoman for Gros Capital Partners said the development would be a new residential development with apartments on three levels.
“Gros Vies has secured a major buyer to develop and redevelop the property for residential and retail uses,” she said.
Gros said it had entered into an agreement with the Highlanders estate developer to sell the property and it was expected to proceed quickly.