In 1987 Leon Fink bought the site for $3,000,000. Opinion amongst the tenants was divided on Leon Fink as a landlord- was he a patron of the arts, or just another Sydney real estate developer? On the one hand he hung on to the studios for 13 years, and was lenient with overdue rents, often accepting art works in lieu of payment. However some say that Council zoning was the only barrier to his intentions to redevelop, and his remark that the land was "too good for artists" suggested to many that profit was his main motive. As early as 1988 Fink unsuccessfully applied to have Council zoning restrictions overturned.

By 1997 the studios were returning a annual rental income of $1.128 million, but land values in the area rose 30% that year, making redevelopment a more attractive proposal.

In September 1997 Leon Fink applied to Council to have the site rezoned residential, submitting concept plans which provided for a 12m strip of land for public access to the foreshore. The plans included seven blocks of units, a boat marina, and commercial space.

Over 5,000 signatures were collected for a petition in support of the studios. The Blackwattle Tenants Association condemned the redevelopment proposal as destroying a socially, economically and historically valuable collective. The Director of the Historic Houses Trust, Peter Watts, spoke of the vibrant cultural energy that "exudes from every wall. It's a wonderful industrial structure which still has exciting and viable use." There were proposals to buy the Long Building and no. 463, with hopes that with a State loan the Leichhardt Council would buy the studios and develop them as a community arts facility.

The Leichhardt Council at first seemed sympathetic to the Blackwattle studios. The Council mayor Kris Cruden said "the Council believes that cultural tourism is the way that Leichhardt has to go". In September 1997 when Cruden was re-elected mayor of Leichhardt she said would concentrate on trying to reduce the size of new development in the area, especially on former industrial sites which were being turned over to housing.

However in November 1999 Leichhardt Council approved the D.A. for redevelopment. If they had not given approval the proposal would have gone before the Land and Development Court which is notorious for favouring developers over local communities and the environment. The Labour State Government made no attempt to prevent the Council from rezoning. In March 2000 Leon Fink sold the workshops to Greencliff developers for $20 million and within 6 months the buildings were demolished.