145 Marcy St. in this New Hampshire Seacoast community used to be a candy store.

A tiny, nearly 80-year-old cottage sitting on a less than half an acre near downtown Portsmouth, N.H., is on the market for $2 million.

While the former candy store at 445 Marcy St. comes with a hefty price tag, there’s big potential on the 0.34-acre site, according to the listing, which boasts that the property is the “last large lot available” in the waterfront city’s historic and desirable South End.

“This is probably one of if not the most-sought-after neighborhood in Portsmouth,” broker Liz Levey-Pruyn of RE/Max Shoreline told Boston.com Wednesday.

The one-bedroom, 320-square-foot cottage dates to 1940, according to city records. Portsmouth’s assessors gave the property a value of $681,100, with the land making up most of that figure. The assessment rose 33 percent over two years, up from $514,100 in 2016.

The listing advertises the site, with frontage on Marcy, Pray, and Partridge streets, as one ripe for a rebuild with “subdivision potential” and ample space for a garage and extra parking. The parcel is in a residential zone, according to Levey-Pruyn, who said city officials told her the site is large enough for a two-family home. Changes to the cottage, however, would have to be reviewed by the city’s Historic District Commission, under local ordinances.

The lot also is in a rather central location, according to Levey-Pruyn. The elementary, middle, and high schools are all in walking distance. Up Marcy Street is the heart of the city’s downtown, as well as Strawbery Banke Museum and Prescott Park, which sits alongside the Piscataqua River.

“If someone built there, you would have water views,” Levey-Pruyn said of the Marcy Street lot.

Older homes in the area have sold for between $1 million and $2 million, she said, but what sets the cottage lot apart is the potential for a buyer to build a new house there, thereby avoiding the challenges in updating an antique.

“This is a really unique opportunity,” she said.