Site of the former Pink Pussy Cat strip club in Kings Cross on the market

The building is best known as once being the home of the Pink Pussy Cat, which was opened in the 1950s by the late “Sir” Wayne Martin and Louis “Last Card” Benedetto.

Mr Martin had connections to Abe Saffron – one of the backers of the club – as well as Frank Sinatra. He sold it after 12 years , according to the Sydney Morning Herald.

The club closed in 2003 and was leased as a medical centre at one stage before becoming vacant in recent years.

PBG purchased the property in 2012 for $1.25 million, according to Domain Group records, with intentions of developing it into a boarding house.

The group decided to put the property back to market after stripping back the inside and realising that the internal features of the building would make it ideal as a premium residential project.

The property is being sold with approval for a mixed-use conversion.

“To have a five-level freehold is incredibly unique, particularly one that offers commercial and retail and a three-level apartment,” Mr Solomons said.

It was also incredibly rare to find loft-style conversion projects in Potts Point, he said.

“The warehouse-style residential conversions are not uncommon in city fringe markets – we traditionally see a lot of them in Surry Hills, for example. But the fact we’ve found one in Potts Point is incredibly unique. I’ve never seen one in Potts Point,” he said.

Mr Pontey said initial response from buyers to the property had been strong.

“It’s rare to find something that allows buyers the flexibility to create multiple, diverse income streams across different asset classes,” he said.

The property, which has a gross floor area of 504 square metres would suit “developers, value-add specialists or owner-occupiers”.

There’s been no shortage of high-profile residential conversions in the Cross in recent years after the area underwent rapid gentrification following the NSW government’s lockout laws.

While those laws have now been repealed for much of the city, they remain in place for the Kings Cross area.

The property is being sold by online auction, which both agents believe will attract a broad, competitive pool of buyers, as happened with the online auction of a series of old cottages in Pyrmont.

Both agents declined to provide a price guide, stating it was “too early in the campaign”.