The Dutch Club Abel Tasman in Carnegie, 12km southeast of the CBD, will make way for 40 retirement apartments over eight storeys run by Victorian-based village and aged care operator DutchCare, now known as MiCare.
Opened in 1924, the Club had over 300 members at its peak, but numbers have now dropped to less than 70.
Members are now winding down their events, but MiCare will allocate a small space in the village for the club.
MiCare currently has four aged care facilities and four retirement villages across Victoria, plus 40 luxury retirement apartments opposite its two aged care facilities in Kilsyth, 36km east of the Melbourne CBD.