Historic Carlton property hits the market for the first time in a century

A piece of Carlton’s history is up for grabs, with a landmark mixed-use building at 138-144 Elgin St being offered for sale for the first time in nearly 100 years.

The three-level property, brought to market by Colliers in conjunction with Gross Waddell ICR, represents one of the suburb’s most significant investment opportunities in recent memory – combining heritage charm, strong rental income and future development potential in the heart of Melbourne’s city fringe.

Designed by acclaimed architect Maggie Edmond AM, the property occupies a 520-square-metre dual-fronted landholding with 20 metres of prime Elgin St frontage. It features a total 1390 square metres of building area, including a ground-floor retail tenancy, 19 studio apartments, three two-bedroom apartments, shared common areas and a rooftop terrace with panoramic views across the Carlton skyline.

The property has a permit-approved fourth level, offering scope to add 10 more studio apartments and further enhance rental yield.

Originally home to Steinberg Drapers, a textile business established by Hyman and Phyllis Steinberg in the 1930s, the site has remained in the same family for almost a century. In 2015, it underwent a careful transformation that retained the building’s historic façade while introducing a contemporary design that caters to modern tenants.

The building is currently leased to Gertrude Grocer and the Melbourne Studio Apartments Hotel, generating an annual income of $494,845 (excluding GST and outgoings).

Both leases include fixed annual rent increases of between three and four per cent, offering investors a secure and diversified income stream from two high-performing sectors – hospitality and accommodation.

Colliers Manager of Investment Services Ryan Milivojac said the property embodied “the best of Carlton’s old and new.”

“This is a rare opportunity to acquire a landmark asset that blends heritage character with modern functionality,” Mr Milivojac said. “With a permit-approved fourth level and a strong tenant mix, 138–144 Elgin St is ideally positioned for future growth and value-add potential.”

Gross Waddell ICR director Michael Gross said the property’s location was another key selling point.

“Carlton continues to be one of Melbourne’s most desirable city-fringe precincts, offering unrivalled access to education, retail, hospitality and transport,” he said. “Its proximity to the University of Melbourne, Scape and UniLodge accommodation, and key tram routes makes it an exceptional long-term investment.”

Zoned Commercial 1, the property sits within walking distance of Lygon St’s dining precinct, the University of Melbourne, and major transport links.

The campaign is being led by Colliers’ Ryan Milivojac and Matt Stagg, alongside Gross Waddell ICR’s Michael Gross and Andrew Greenway, with expressions of interest closing on Thursday, November 20, 2025, at 2pm (AEDT).