Local developer Goldfields Group is purchasing a 1.1 acre mixed-use development site near St Kilda Junction.
The former Montefiore Home for the Aged facility at the south west corner of Punt Road and Raleigh Street, Windsor, is understood to be trading for about $35 million.
It was offered in June by Jewish Care Victoria, which two months earlier opened a replacement facility next door.
Goldfields is expected to construct about 260 dwellings as part of a bigger project.
The Commercial 1 zoned 4293 sqm corner site could also accommodate a hotel, office and substantial multi-level podium with retail or social infrastructure related product (Alfred Hospital is about two blocks north).
In this part of town, five kilometres south of Melbourne, and 400 metres to St Kilda Junction, skyscrapers are permitted to rise on average between 12-20 floors (story continues below).
Goldfields has been active since the last rush
Goldfields has been an active purchaser since the late 2017 property peak.
Last November it spent $19.1m on a 1704 sqm site at 587-593 Church St, Richmond, now the subject of a 13-storey residential hotel application.
Fifteen months ago it outlaid c$105m for a 71 hectare Clyde North farm with the potential to be subdivided into about 1000 housing lots.
Last May we reported Goldfields invested c$20m on a 12ha site at 39-57 Saric Court, Fraser Rise, in Melbourne’s west.
The local builder, directed by Lachlan Thompson and Marco Gattino, is also constructing a 24-level, 24,000 sqm A-grade office on a speculative basis at 627 Chapel St, South Yarra.