The auction for a 1930s art deco ex-theatre at 420 Spencer Street has been cancelled.
The property was expected to trade for more than $7 million.
Vendor, investor, Paul McBain, paid just under half that six years ago.
Nightingdale Electrics is the tenant, it pays annual rent of just over $216,000.
The building occupies the prominent south east intersection of Dudley St, in West Melbourne (story continues below).
Local agency sources speculate issues relating to the permit (which was granted despite opposition from locals, architects and the National Trust), may be behind the cancellation.
Colliers International’s Matt Stagg declined to comment.
The asset was being marketed as a development play – approved for a 13-level Fender Katsalidis-designed apartment tower behind the heritage facade.