The Waterstones building on King Street and Deansgate in Manchester has been bought by EPIC UK for £17m, a yield of 5.98%.
The 63,000 sq ft block was sold by Royal London Asset Management, which initially put the building on the market with a guide price of £14.5m, which would have represented a 7% yield.
There is currently 15,000 sq ft of vacant space on the upper floor of the building, which the vendor said would suit residential conversion.
Tenants include Waterstones, Patisserie Valerie, Fraser Hart and Boodles. The property produces a total net income of £1.1m a year.
Property investor EPIC owns and manages a $1.5bn portfolio across the UK and USA, with other Manchester assets including Number 1 The Avenue in Spinningfields.
Tushingham Moore represented the vendor. The purchaser was represented by Zaman Roberts.