The former Ambassador Hotel on Nepean Highway, Frankston, where the apartment is located.
A Frankston apartment in what was once dubbed Australia’s most dangerous address is on the market for $149,500.
The one-bedroom, studio-style home is located in the former Ambassador Hotel, which served as a wedding venue until the 1990s.
It was later converted into a temporary residence and became known as a hub for drugs and vandalism.
RELATED: Unit in notoriously troubled Ambassador Hotel building sells for just $99,000
Melbourne property: ‘battler’ ‘burbs top $100k after Albo home plan change
A dilapidated Victorian school with no power or plumbing for sale
In 2018, a drug addict was jailed after stabbing his neighbor over a $27 dispute.
That same year, some apartment owners called the area a dangerous place to live after hiring 24-hour security guards and installing security cameras in an effort to stamp out crime and anti-social behavior.
However, Fosterfroling Real Estate director Adrian Foster said the building had overcome its previous “bad reputation” to be a quiet and safe place.
“All the owners have got together and got a board of owners, they monitor it – so there are people who have skin in the game they are running now,” said Mr Foster.
![40 of 325 Nepean Highway, Frankston - herald sun real estate](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
The apartment is on the ground floor of the complex.
Fosterfroling Real Estate Director Adrian Foster says the owner has spent tens of thousands of dollars updating the home.
He said the apartment at 40/325 Nepean Highway was recently renovated with a new kitchen, new carpet and new paint.
It offers access to public washing facilities and is just 250m to the beach.
“I think it could be the Melbourne deal of the year, if that’s what you’re looking for,” Mr Foster said.
“It’s going to be hard to beat because it’s a very strong brick, and it has a slab roof suspended over it.”
Public records show the apartment last sold for just $92,000 in September 2025.
The apartment is approximately 650m to Frankston Central and 1.1km to Frankston train station.
Mr Foster said he believed the owner of the apartment had intended to keep it as an investment for the long term but changed his mind and decided to sell it after it was repaired.
The building has a Section 173 overlay, which means owners cannot make one of the units their primary residence – however they can live there if they have a separate, permanent residence.
“It’s robust and structurally, it’s not like you buy a lemon and you have to farm twice as much (money) for it,” added Mr Foster.
There is one bathroom and plenty of parking nearby.
A ground floor apartment can be rented for $270-$285 a week, he added.
Mr Foster has received many calls about the property including investors and other buyers who have already made offers to buy.
Other apartments inside the former Embassy, with two bedrooms, sold for between $196,000 and $238,000 in 2025. All written with Mr Foster.
PropTrack records show Frankston’s median unit price is $550,000.
Subscribe to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered straight to your inbox.
MORE: Housing targets could wipe out small builders, industry warns
A humble dim sim shop turned into Melbourne’s biggest cave
$4.3 billion late: construction tops ATO tax list
