This former Fitzroy brothel had a seedy past, but now it's got a designer future

An inner-city Melbourne terrace, which was once home to a brothel known as Club Rose 182, has been listed for sale with a price guide of $3.050 million.

The four-bedroom, three-bathroom home at 182 Rose Street, Fitzroy was purchased by the current owners in 2014 for $1,292,500 million.

At the time of the purchase the couple were living in another residence on the same street and saw the potential in the tired terrace with a seedy past.

The couple worked with Fieldwork Architects to transform the property from a dilapidated brothel to a stunning family home.

But rather than erasing its colourful history, the Collingwood-based architects honoured it with playful nods to the former residence, including salvaged red neon and custom pink LED lights and bespoke leather and velvet furnishings, including a highlight banquette seat in the downstairs living area.

The conversion included refurbishing the existing terrace and adding a new dwelling to the rear of the property.

The two buildings, each with two bedrooms, bathrooms and living spaces are connected by a central shared bluestone and timber deck courtyard.

A highlight of the courtyard is a neon pink sign that screams 'exquisite ladies' and was left behind by the buildings' former owners, only to be repaired as part of the playful makeover.

"The buyers who have come through the property are really liking that the current owners have really leaned it to the colourful history of the home," says Isabelle McEwan Marion from Nelson Alexander Fitzroy.

She says the flexibility of the two separate residences, giving buyers the choice to live in one, work in one, or even rent one, is a key drawcard of the home.

"The amount of accommodation really is a highlight. You've got the original terrace home with two bedrooms, and then you've got an entire property out the back all on the one title," she says.

"The studio out the back, with the living downstairs and the two bedrooms upstairs, makes it a great retreat for older kids, or guests can have the entire space to themselves. It gives people lots of choices in how they want to use the property," she adds.

McEwan Marion says the vendors are now looking for their new home and potentially a new renovation project.

"They also renovated their previous home, which we sold a few years ago, and they've been living here ever since.

"They are now ready to move on and depending what they buy next they may take on another renovation project, as they really do enjoy getting involved in the whole design process," she says.

McEwan Marion says despite being located in the backstreets of busy Fitzroy, the terrace has been thoughtfully designed as both a refuge from its urban surrounds and a place to entertain in style.

Detail-focused and light driven, the home is full of surprises, including textured tiling with brass and pink highlights, herringbone floorboards, painted brickwork and rich timber joinery.

The home is being sold by Nelson Alexander Fitzroy by private sale.