The 3996 sq m dealership site at the corner of William and Franklin streets is opposite Flagstaff Gardens and the Queen Victoria Market car park.
This time last year, the site was being marketed as a major campus-style, low-rise office development.
Victoria Police and petroleum giant BP were believed to have considered but rejected the site for their new offices.
Knight Frank agents Clinton Baxter and Langton McHarg will auction the site next month.
Drapac has also listed for sale a fourth development site of 1670 sq m, available for private sale at $7.5 million.
It’s speculated the developer will retain the fifth site.