This is Mr Philps' first sortie into property development and he is being "mentored" by David Borman, who is the driving force behind the village square project.
Mr Philps said developing 39 Perry Street along the lines of his concept plans would likely cost $1 million.
On the downside of the development, Supergrans, which is using the land rent-free as a community garden, will have to move out. However, Masterton Mayor Garry Daniell is trying to find a new home for the organisation, Mr Philps said.
"We take over on October 31 and the intention is to move other businesses on to the land. It's going to be an eco-friendly development to suit small to medium businesses or a collection of micro-businesses that may only need a 40sq m unit," he said.
Mr Philps said there would be a green space in the centre which could be used by staff for lunch breaks and the whole idea was to build on what was already in the pipeline for the street.
"The Perry Street story is gaining momentum and this development will provide further evidence of that. It will join David Borman's town square which is due to begin this year and link up with the Markham's site across the road."