However a community spokesperson is concerned the development doesn't adhere to the precinct code.

Canberra developer Intellectual Property Group has submitted an application for 56 serviced apartments, a restaurant and beer garden at 7-11 Botany Street.

To be known as The Lord Hotel, the building would span four storeys plus an attic.

Intellectual Property Group is led by director Peter Micalos, formerly a general manager at Geocon, who is also part of the group developing The Markets at Belconnen.

The developer had originally planned 60 warehouse-style residences for the site at block 1, section 42 in Phillip.

Mr Micalos said the decision to change the plans from residential to commercial accommodation was made in order to "capitalise on the boom of Canberra's post-COVID transient workforce and population".

"It will have a great new local gastro pub at ground floor," he said.

According to the developer's website, the project will begin the transformation of Phillip into "the new Braddon of the south".

The updated plans show the serviced apartments would be spread across levels one to three and the attic, while 47 parking spaces would be provided across a two-level basement.

The existing two-storey commercial building, bordered by Divine Court, on the block will be demolished for the project.

The developer paid $2.2 million for the 828-square-metre site in 2020, CoreLogic records show.

The development application also includes varying the crown lease to add commercial accommodation and hotel and serviced apartments, plus a list of other possible uses including brewery, distillery, medical centre and indoor entertainment.

Mr Micalos said the development would "absolutely" mark the first step in a new era for Phillip.

In the next five to 10 years, he envisioned the area to look like Alexandria or Surry Hills in Sydney, with "a diverse range of artisan shops, services and housing options".

Fiona Carrick, president of the Woden Valley Community Council, raised issues with the height of the development.

According to the Phillip Precinct Code, a building height of five storeys is permitted in the area only if the development fronts on to either Townshend Street, Colbee Court or Dundas Court and if the fifth storey is setback a minimum of three metres from the front boundary.

The development proposal states the fifth-floor attic has a three-metre setback to the floors below, however the building does not front either of the streets mentioned.

"If a building of this size is approved on this site, it breaks all trust in the expected outcomes of a four-storey building and the ACT government's planning processes," Ms Carrick said.

Ms Carrick also said the oversized floor heights of 4.5 metres would make the development as tall as a seven-storey building.

Phillip Business Community president Tom Adam said he had concerns about the impact a new development would have on traffic flow in the area.

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He invited the developer to engage with the community group about how the development would integrate into the area.

"We're not anti-development, we're actually desperate for a future of Phillip that does make the place look better and encourage more people to come there and more businesses," he said.

"There's been a concerted effort for development north of Hindmarsh Drive, but nothing has been done for more than 30 years south of Hindmarsh Drive.

"Without a cohesive plan it seems everything is being focused on north of Hindmarsh Drive and so we're really keen to make sure that [this] development actually enhances the suburb and doesn't butcher it up."

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