The Allbell Chambers, on the south side of the street, near the Octagon, is being bought by Flat Iron Investments Ltd.
One of the company's two owners, Lockie Chisholm, said yesterday the building was under contract to his company and the settlement date was April next year.
The four-storey building contains the Two Chefs restaurant and has other retail and office space.
Mr Chisholm said he was open to ideas on future uses for the building.
"We're currently carrying out due diligence into basically seeing what its best usage would be. It would lend itself very nicely to a boutique hotel, office space or inner-city apartments."
The brick and plaster building has a footprint of about 600sq m and, according to information held by the Otago Historic Places Trust, its facade shows Art Deco influence, although originally it would have had "Italianate" elements.
The building was erected in 1909 for wool merchant George Robert Story and the original plans show a skin store behind the shops on the ground floor.
It was bought in 1929 by brothers-in-law and property investors Albert Alloo and Mr P. Bell, hence the name Allbell.
