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A two-building commercial property on the outskirts of Harvard Square has been sold for $16.1 million to a Cambridge-based developer.

First Cambridge Capital acquired 17 Story St. and 127-129 Mount Auburn St., a one-third acre site, after outbidding a group of multifamily and boutique hotel developers, said Christopher Sower, executive vice president for Colliers International in Boston.

“There’s definitely a higher and better use in some form of redevelopment and that’s the play down the road,” he said.

Colliers represented the seller, 17 Story LLC. The site contains two office buildings totaling nearly 20,000 square feet that are leased to 20 tenants, with all leases expiring by July 2021. The property is zoned for a floor area ratio of 1.75 plus a 30 percent density bonus for residential development with inclusionary housing, and maximum building height of 60 feet.

First Cambridge Capital is a private equity company that specializes in EB-5-financed development projects.

The offering attracted a strong response from local and international investors, Sower said. As with many sales transactions that had been under agreement before the COVID-19 pandemic, the buyers were comfortable moving forward despite the new economic uncertainties. Interest remains strong in development sites given their longer project timelines and potential for a recovery in 12 to 18 months, Sower said.

“Deals that are in the earlier stages are having more challenges, and some of the deals coming to market are on pause, but we’re still seeing traction,” he said.