Argyle House, built in the 1860s for the Australian Agricultural Company and formerly known as Fanny's nightclub, has been listed for sale.
Adam Leacy, of Commercial Collective, is marketing the site at 311 Wharf Road in Newcastle in conjunction with Deane Moore, of Moore and Moore Real Estate, and Blake Edwards of HTL Property.
The property has a B4 mixed use zoning and a lease in place until December 31 this year to the current operators. It has a net income of approximately $225,000 per annum.
"The real opportunity here is the property acquisition and what somebody might do with it down the track," Mr Leacy said. "That could be that it's maintained as a hospitality venue. It could be a nice big residence, and with the height limit and FSR, someone might look to develop the site.
"It's a [state] heritage-listed building so you'd need to work with heritage ... but it's an opportunity and there's plenty going on around it.
"It's a purchase acquisition of the building with a lease in place. That gives someone the opportunity to submit DAs while generating income from the asset, so that's beneficial. It will be investor interest, developer or an owner-occupier."
The building, which will be sold on behalf Russell Richardson consortium, is set for auction on May 15. A price guide has not been disclosed.
"After eight years running this iconic nightclub building we are just seeing what the market tells us this site should be for the next ten or twenty years," Mr Richardson said.
"For us it's business as usual, as we will stay on running the business giving time for the new owners to realise its potential.
"We are in the business of entertainment and will continue to be. We're sure there will be operators out there with amazing ideas for this unique spot in town."
It has a maximum building height of 30 metres and FSR of 2.5:1.