If this sale price is achieved, it would suggest the value of investment grade assets are recovering slowly.
Given the size of 71 Queens Road, and the length of its office leases, the asset offers no medium term residential redevelopment opportunity.
However Macquarie Real Estate Capital is part of a consortium developing a 12-level, 91-unit apartment complex, Proximity, next door, at 70 Queens Road, replacing the historic Avalon mansion.
Plans are also underway sources say to redevelop the former Suntory restaurant site at 74 Queens Road into a major apartment complex.
The former John Batman Hotel, opposite what is now the Sebel Albert Park (formerly the Carlton Crest) was recently redeveloped into a public housing block.
Jones Lang LaSalle and Colliers International are marketing 71 Queens Road.