Ninety nine years after it was developed, the Palace Theatre, known to a generation as the Metro nightclub, is for sale.
It is vacant and expected to attract developer interest.
Agents say the property (20-30 Bourke Street) could trade for more than $20 million.
Given the zoning a c140-metre tower could be considered.
Publican Jerry Pilarinos is the vendor; he paid Bourke Property Group $9.8m in mid-2007 to occupy.
The site spreads 1454 sqm.
Melbourne Revival Centre once occupied the theatre.
A plan previously reported in The Age suggesting the owner would sell the site to a developer for a 40-storey building, appears off the table.
Colliers International’s Bryson Cameron and Matt Stagg are understood to be marketing The Palace property off-market.
Mr Pilarinos holds other metropolitan investments and developments sites; he held South Yarra’s former Lamborghini dealership which is now a 14-level, 99-unit residential complex, Tresor.