Located on the corner of Crown and Kembla streets, the building (pictured) was bought in 2003 by Sebvell, a company owned by Mr Vellar and Frank Sebastian, for $6.75 million.

Mr Vellar declined to comment on the Lang's Corner property, but the attempted sale came as a number of the developer's projects faced increasing problems.

In May, council administrators formally ended Mr Vellar's plans to transform the North Beach Bathers' Pavilion, while last month a bulky goods retail development at John Cleary Place in Coniston, submitted by Coniston Investments (formerly Vellar Group), was recommended for refusal.

The administrators have also formally challenged Mr Vellar's $100 million Quattro development in court, claiming it was tainted by corruption.

The total area of the Lang's Corner site is more than 3000sqm, and the location is incorporated in the Wollongong City Centre Revitalisation Strategy.

This allows for a building of 48m or 15 storeys on the site and a 6:1 floor space ratio for commercial use and 3.5:1 for residential use.

No significant development applications have been lodged for the site in recent times, although the 1600sqm building is listed on the Royal Australian Institute of Architects' 20th century register of significant buildings.

Simon Kersten of Colliers International said negotiations were still taking place with five parties who were potential buyers unable to bid for the property at the auction.

"Not many properties of this type sell at auction, but it was a process we needed to go through," Mr Kersten said.

He said a figure of around $10 million had been placed on the building, but that had been revised downwards after the auction process.