The property, at 42 – 48 Batman Street, sits on 897 square metres of land between King and Spencer Streets, and is walking distance from both the Flagstaff and Southern Cross train stations.
The sale included a vacant two story office building, which the new owner will refurbish and rent out.
Bigger plans to redevelop the site, which is also near Digital Harbour at Comtechport at Docklands, are believed to be under consideration.
The site could make way for a commercial or residential high rise apartment tower, sources say, but is now likely to be developed in the next property construction wave, local sources say.
Gross Waddell selling agent Joseph Carbone sold the property with O’Callaghan Commercial director David O’Callaghan.
He said it was contested by six parties, with three parties bidding at over $3 million.
He said there were more than 100 people at the auction and that the price exceeded the vendor’s reserve expectation.