A prime chunk of Tauranga's CBD is for sale with developers already eyeing up the commercial block as the future site of a five-star hotel.
The 2449sq m property on the corner of Spring and Durham streets is marked for total redevelopment or expansion.
It has the potential to transform the look of the heart of Tauranga, city leaders say.
The site is one of the biggest land and building packages in the CBD, with a rateable valuation of $5.46 million. Current tenants include Te Wananga o Aotearoa, and homeware and furnishings retailer Tres Chic.
The property is being marketed for sale through real estate agency Bayleys, with a tender process closing on June 19.
Bayleys Tauranga salesman Rob Pinny told the Bay of Plenty Times Weekend a development concept plan for a new four-storey retail and office complex - with 82 covered car parks - had been drawn up and was available for viewing by potential purchasers.
Anything above the fourth or fifth storey would command expansive views of the inner harbour and the CBD, Mr Pinny said.
"Initial feedback from potential buyers who have looked at the site are that it could sustain total redevelopment into a mixed-use location - with retail units at street level, new commercial premises immediately above, and with the option of an apartment complex on the upper floors," he said.
But one big-name developer the agency had spoken to was looking at building a new 220-room four-to five-star hotel, he said.
"Tauranga is lacking a major branded accommodation provider at the top end of the market, and I can see the logic of building such an amenity to service the corporate sector operating in the central city," he said.
"As with the apartment proposal, hotel rooms on the upper floors would have excellent views over the city - and all just a few hundred metres walk from the social infrastructure which hotels seek to be associated with.
"Any combination of an apartment or hotel redevelopment with a mix of retail and office would see a significant addition to the inner-city's skyline and would complement the modernisation seen around the surrounding area over the past 12 years."
City leaders have welcomed the news, saying the development would add immense value.
The hotel option would boost employment in the region and attract more people into the city heart, they said.