Mr Borman said this area could be tenanted to one "or perhaps two" businesses.
"I am working with prospective tenants now, but nothing has yet been signed."
Work on restoring the old building, thought to date back to the mid-1930s, will begin as soon as the development company has obtained the necessary building consents from Masterton District Council.
Included in the work will be quite extensive earthquake strengthening identified when Mr Borman commissioned an engineer to assess the building.
"He determined the building could be saved," Mr Borman said. "There is not a lot of brick in it, it's mostly concrete and steel."
The exterior of the building will be saved in its entirety.
King Street Live, an entertainment venue, closed at the end of February after three years.
Managing director Carl Schdroski said shareholders decided to close citing waning community support for the lesser-known acts, along with a low population and income range in Masterton and changes to alcohol laws.