The SJB-designed proposal at 256 Chapel Street, on the corner of King Street in Prahran, will include 750 sq m of shops on the ground floor, with 75 one or two-bedroom apartments above.
The two-level building, with ground-floor shops, was sold by developer Vicland for what is believed to be more than $10million.
Last year, Vicland sold an office building at 422 Little Collins Street to Becton for more than $22 million.
The Chapel Street development is Watpac’s first Melbourne venture.
Gross Waddell director Jonathon McCormack brokered the sale and is marketing the project, which is expected to start construction next year.