The former Fitzpatrick's Auctioneers, on the Market Square in Kildare Town, which was built in the 1920s and was a protected building, was demolished in recent days.
It had been in use for offices until it was sold a number of years ago.
The building was bought by the owners of neighbouring Harte's Bar and Grill.
The site, which is in the shadow of St Brigid's Cathedral, has been cordoned off.
Planning permission was granted in 2016 for the demolition of the two storey derelict building including a rear agricultural shed.
Approval was given at the time for the erection of a new two and a half storey building on the corner of Market Square and Firecastle Lane.
The new building would provide retail space, ancillary dining accommodation, a commercial kitchen, an external service yard with 6 cycle spaces at ground floor level.
In the plans was provision for a nine-bedroom guesthouse with en-suite bathrooms, roof lights and a roof terrace at first floor level.
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