A Sydney-based development group recently purchased the block on Kiewa Street between the Mate's building and Target store, which has been used for a temporary car park since 2017.

A development application for the 29.2 metre tall building to be known as the Albury Hub was submitted to Albury Council this week after a contract of sale on the land with the former ownership consortium settled recently.

Subject to approval from a joint regional planning panel due to the project's price tag, the Albury Hub will consist of ground floor retail and bike parking facilities, first and second floor car parking and commercial office space and "end of trip" showers and changerooms for those cycling to work on the remaining four levels.

"We've spent the last five to six months looking at how we can provide the best outcome for the site," developer Jim Katehos said.

"It 's a strategic location.

"The thing that really caught our attention was it's in such a cracker position and so under utilised in its current form.

"From a pedestrian movement perspective it has got the highest number of pedestrian movements in Albury.

"But it is being used as car park on a short-term basis.

"Visually it wasn't adding anything to the amenity."

A string of development plans for the site have been submitted with council since 2007.

A development group, Proton, had plans approved for a three-storey building on the site, but the global financial crisis thwarted the project.

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Proton also owned the Mates's building, but it was sold in 2011.

The latest development group is prepared to enter into a voluntary planning agreement with council to cover a shortfall on the number of car parks for a building of its size required under planning rules.

The shortfall, according to a traffic and parking impact assessment supplied by the developer, is 11 with developers offering to pay $15,000 per space towards parking facilities in the CBD.

The Volt Lane and Kiewa Street car parks are already located in the area.

The developers are proposing two-way entry and exit on Amp Lane from Smollett Street on an exclusive use basis.

"Use of the laneway by vehicles other than those associated with the proposed development will create unnecessary safety risks for all users, including pedestrians," the development application states.

Commercial agents LJ Colquhoun Dixon have been appointed as leasing agents for the Albury Hub with local, state and national tenants to be sought.

"There really is a limited supply of A grade office space in Albury," director Andrew Dixon said.

"The office vacancy rate in Albury at the moment is low.

"Probably the last new development was the building we're in (corner Kiewa and Wilson streets) and that is A grade office accommodation built in 2013."

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