The Valentines building on Angelsea St is up for auction next month, after nine months on the market.
The building, which was under contract for six months last year, and spent a period under lease, will finally go under the hammer on March 7.
It had been a Valentines Restaurant since it was built in 1999.
Colliers director Alan Pracy, who is selling the property, said the vendor had started to focus on the sale after deciding to move ahead with some other projects that he had in mind.
"At that point he probably became serious about putting it out into the market and actually trying to sell it rather than just seeing what happens," he said.
All up the property covers 2990 square metres of land, with 730sqm of building.
Pracy said the location of the site meant there had been a significant level of interest.
"It is a key strategic gateway site in terms of being on the prominent entrances into town from Cobham Drive and Angelsea St, so we've had a really good level of interest in it."
The site had also been identified as the southernmost border of a "City Living Precinct" in the proposed Hamilton City Council District Plan, which outlined a strong preference for the development of the area to focus "mixed-use residential centre, supporting small office and commercial activities."
"It ideally wants a large office building built on there with apartments and various other things which are fine in the middle of a large city but don't make perhaps make the most sense in Hamilton," said Pracy. "People need to look at the property themselves and decide what they want to do."