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The property is being marketed by Ray White Semaphore agent Kate Smith and set to go under the hammer on February 7.

Owned by Karen James and Peter Johnson since 1997, the state-listed heritage property at 25 Divett Street represents a remarkable transformation - from a grain and liquor storage warehouse to a community arts gallery, and finally into a sophisticated three-level residence.

“We had a sense we might be able to save one building and show what's possible,” said Mr Johnson, a ceramicist who has poured his craft and vision into the property's restoration.

“The building is a part of us - we're deeply attached to it.”

When they bought the two-bedroom two-bathroom property it had suffered water damage, had missing floor boards and rubbish dumped in its cellar.

From 1997 to 2016, the property known as Gaff Studio, was the permanent studio and exhibition space for Mr Johnson, and other local artists.

In 2005, the studio was used as a film set for the popular Australian movie Look Both Ways.

Ms James and her partner are selling their property as they are downsizing and said it would suit young people who have “energy to bring it to life”.

“When we're there pottering, the building comes alive. Artists or professionals would suit this property,” she said.

What began as a functional warehouse has evolved through careful stewardship into a 140sqm creative sanctuary featuring original volcanic stonework, Australian timber floors, and spaces that span from primitive authenticity to modern sophistication.

“Materials were selected to reflect the warehouse’s maritime history, including timber windows and floorboards and corten steel for the balcony,” Ms James said.

The couple's initial vision saw them establish a community gallery and studio space at the rear of the building.

By 2016, they embarked on a project to add extra levels and more space to their property, while retaining the creative studio that has become the building's soul.

“When we cleaned out the cellar, we found a gaff hook,” Ms James said, referring to the nautical hook that speaks to the building's seafaring heritage.

She said the front of the building once stored ship supplies and equipment, while the rear operated as a felt supplier.

“At street level - once much lower than today - a wine merchant ran operations from the cellar,” she said.

Mr Johnson said the warehouse had a “lovely feeling”.

“It's quiet, and the walls are solid, he said.

“You get lost in your space. It's the quietness and peacefulness that you work away in.”

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