Near the T-intersection of Kensington Road, the site is close to the South Kensington train station, and the massive Kensington Banks housing project, which was developed in the 1990s.
Fitzroys selling agents Dean Alexander and Geoff Emmett are marketing the West Melbourne site.
In July 2009 another inner city site once used as a Flinkier dealership and with frontage to Hopkins, Whitehall and Warde streets, in Footscray, sold to a residential developer for $5.25 million.
Last week the government’s development arm VicUrban paid about $21 million for a 1.3 hectare riverfront site, in nearby Footscray, occupied by Le Mans Toyota.
Flinkier, which specialised in the import and selling of American motor vehicles, is now based at Kingsway, South Melbourne. It operated from West Melbourne until 1968.
Other former car yards purchased in recent years because of their residential redevelopment potential are in the CBD, Southbank and South Melbourne. One of the biggest car yard redevelopments to actually start construction, though, is at the Camberwell Junction.