To be part of the kitchen, I think you'd want to close it from the living area and make it into a storage pantry. Is there a mini-fridge below or just a cabinet? I think for marketing, a wine bar with wine fridge below would get you the most bang for buck. Install red wine and glass storage above, fridge for whites, champagne below. Do the walls in corks. When you stage it, make sure a bottle of champagne, two flutes and a note implying the celebratory toast upon closing are on the counter.

I concur with decoenthusiaste. My concern with demoing the wall on the right is that it has electrical switches in it that may not be easy to move. Wine bar has more flexibility than coffee and that is coming from a Seattlite!

Thank you. I actually live in Seattle area! My townhouse is on a private golf course and country club and a wine bar does make more sense. I was thinking of only demoing the closet surround, not the side walls. The back wall of the bar is my living room and I was considering installing a transom window or some kind of pass through to let in light and open the space (similar to Buena vista Deco picture) but not sure if that is worth the trouble.

I think your location makes the wine bar a "shoe-in." If one side is kitchen and other living room, making it accessible from both sides might be cool. You'd be able to do some prep work in the kitchen and set it into the bar area from there, while guests could access from the other side. Could you add a bar counter on the living side an a few stools? Here's a piece of furniture that accomplished the pass-through idea.

Actually, if I were selling, I wouldn't put too much into a conversion. Leave that for the prospective buyer. For instance, a wine bar makes the most sense nowadays, but I personally am not a wine drinker, so I would want it to be a pantry/closet for more storage. I currently also live in a condo, but it has NO extra storage space. Unless your real estate agent recommends a major change, I would suggest not spending too much time and money on this project. It's already a "plus" area for most condos and townhouses.