The City Ford dealership at the Haymarket roundabout, north of the city, is selling to the University of Melbourne.
Sources say the group will pay $40 million for 750 Elizabeth Street.
The property is near other college held real estate
Vendor Drapac had earmarked the land for a 12-level, 37,000 square metre Bates Smart designed office; it had been speculated University of Melbourne might have part tenanted.
When contacted about an acquisition, a school spokesperson said it was keen for the property but a deal hasn’t concluded.
Ashley Wain, director with the vendor, declined to comment.
Drapac paid Nissan $17m for the 7215 sqm holding in October, 2013.
That vendor acquired it from Ford 15 years earlier.
The Haymarket roundabout is a major intersection connecting Flemington Road, Peel Street and Royal Parade.