A well-known commercial building in the north end of Saint John has been sold.

R2 Capital has purchased Place 400 on Main Street, the company announced this week.

The company paid $17.50 per sq. ft. for the 160,000 sq. ft. office building — or around $2.8 million.

Place 400 was initially listed for $6.2 million, but the sale price was recently cut in half to $3.1 million.

Brunswick Brokers, which listed the property, said it was believed the highest and best use for the site was to demolish the existing structure in favour of a brand-new high-rise residential development.

However, it appears the new owners of Place 400 have no intentions of turning the commercial building into residential development.

“With this acquisition, R2 Capital is offering significant savings with attractive leasing opportunities to local businesses, featuring rates well below market value,” the company said in a news release.

“Early tenants will enjoy substantial cost savings while securing a first-mover advantage as the property undergoes planned enhancements to create a premier office environment.”

Place 400 is currently home to a number of businesses, including DealerMineCRM and Pub Down Under.

The building was constructed in 1978 and its last major renovation was in 1989, according to Brunswick Brokers, which listed the property.

It was last sold in 2017 for $13.1 million, according to Service New Brunswick property records. The property was most recently assessed at just under $6.4 million.

R2 Capital also owns two other properties in Saint John, including 75 Prince William Street uptown and 168 Rothesay Avenue, which is home to Atlantic Superstore, Fit4Less, Starbucks, Staples and Cannabis NB.