It's one of Bondi's prime office spaces, allocated to the national surf lifesaving body for a peppercorn rent - and it's been standing empty for four years.
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Local clubs say their parent body is squandering the resource while they are struggling for space and upgrades.
Since 2010, when the not-for-profit Surf Life Saving Australia moved to bigger headquarters in Rosebery, most of the first floor of Bondi Icebergs surf club, which overlooks the iconic beach, has been empty.
Documents obtained by Fairfax Media show the organisation was allocated an annual $70 rent for 40 years until 2042 under the Bondi Baths Trust, which is funded by the state government. That is the same cost as two antipasti plates at the exclusive Icebergs restaurant two floors above.
Local surf clubs have criticised the national body for its inefficiencies and questioned why the sought-after space, which real estate agents estimate to be worth about $12,000 a week, has not been utilised or at least shared.
Former Ironman and surf club local from Manly Craig Riddington called the situation "mind-boggling".
"The clubs are all battling it out, particularly rural clubs and a lot of inner-city clubs, to have space available and put administration in - it seems pretty decadent," he said. "I'm sure people wouldn't be happy to hear that it's just sitting there."
Mr Riddington questioned why other surf clubs or water safety groups weren't allowed to use the space.
Fairfax Media understands independent businesses have been regularly calling the club to inquire about the empty space. According to the lease, the space can only be used by SLSA.
SLSA's chief executive Greg Nance defended the national body, saying: "To suggest that SLSA would waste resources is not in line with the direction of the organisation.
"SLSA has taken time to best determine the use of the Bondi site to ensure that it does not waste resources but allocates them in the most efficient way possible," he said.
When asked why the space had been unused for four years, Mr Nance said that it had taken "some time" to resettle the staff and review SLSA operations.
"Surf Life Saving Australia determined that the future use of the Bondi Icebergs site would be finalised once we settled into the premises of the new headquarters at Rosebery and considered various options for Bondi."
This is not the first time the national branch has been accused of misusing its resources. In 2011, a report showed the SLSA Foundation had spent 62 per cent of the $23.8 million gross fund-raising revenue on administration costs.
Since Mr Nance's appointment in June last year, that figure has dropped to 13 per cent.
The chief executive officer of the Hunter regional branch, Rhonda Scruton, who oversees 13 regional clubs, said she was often forced to hold chook raffles to raise money.
"It is quite astounding that there isn't efficiency happening upwards," she said. "I'm having to put so much time in to try and replace surf clubs because the buildings are literally falling down," she said.
According to the charity's latest annual report, it received a revenue of $37.2 million, mainly from government grants. A spokesman for Health Minister Peter Dutton said the federal government had given $7.47 million to SLSA in this year's budget.
Mr Nance said the SLSA now had plans to open a "surf house" in the space during mid-2015.
"At our core is the mission of the movement - to save lives, create great Australians and build better communities," he said.
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