South Melbourne's Wayside Inn is for sale, with $3.8 million-plus price expectations

The 587-square-metre site is leased to private operators who are on a month-to-month tenancy, according to Mr Connolly, who handled the leasing campaign in 2019.

The Wayside Inn dates back to about 1868, although the current property was built in 1915.

It was refurbished in 2018 and consists of a large front bar,  bistro and an upstairs function room with outdoor deck.

Its capital-city zoning means there is potential for a new owner to incorporate an office or retail component.

“The property lends itself to numerous conversion or redevelopment opportunities including a multi-tenant conversion ranging anywhere from hospitality, retail or even office space on the first floor,” Mr Connolly said.

“We haven’t pigeonholed the property to one market as it provides so much more flexibility,” he said.

Mr Macfie said the property’s liquor licence and proximity to Crown Casino made it ideal for a hospitality operator.

“The property has the benefit of a rare 5am liquor licence, presenting the opportunity to pursue a repositioning strategy and fully capitalise on this attribute,” he said.

Despite pubs currently remaining closed under Victoria’s COVID-19 provisions, Mr Connolly said there were signs of life in the sector.

“The Wayside Inn comes to the market at a point where we are now seeing the easing of Victoria’s lockdown restrictions, a renewed sense of positivity starting to permeate through our market and record-low interest rates,” he said.