The freehold property leased to well-known seafood restaurant Bacash in South Yarra's Domain Road village is for sale after the failure of a business relationship.
The property is jointly owned by restaurateur Michael Bacash and Stefan Bradica's Domaine Investments and located in the popular cafe and restaurant strip opposite Melbourne's Botanic Gardens.
It will be auctioned by agents CBRE next month with price expectations around $3.5 million.
Mr Bacash would not be drawn on details of the dispute but said he and the other owner had "different objectives with the building".
"It's a great street and we hope to stay there. We hope the sale of the property doesn't affect our 16-year lease," Mr Bacash said.
The shopping strip is popular with weekend walkers and features several cafes and restaurants.
A neighbouring building of a similar size leased to the Domain Cafe and another retail outlet, Turner & Lane, sold in June this year for $4.3 million.
CBRE agents Mark Wizel, Justin Dowers and Rorey James have been appointed to oversee the sale.
Mr Wizel said Bacash had recently used a four-year option to extend its lease on the premises which returns an estimated net income of $131,000.
The Domain Road strip was fully leased with no vacancies, he said.
Other strip shopping centres around Melbourne have not been as fortunate.
Vacancies in nearby Toorak Road South Yarra have almost doubled over the past year.