Oxford Properties Group has acquired the 125 Lincoln St. garage in Boston’s Leather District, a 2.7-acre property viewed as a potential transit-oriented development site two blocks from South Station, for $39.5 million.

The property placed on the market in February was marketed as a potential mixed-use development site for 223,880 square feet under the current zoning. It attracted a wide range of interest from developers for apartments, office and lab space and continuation of the existing uses, according to an industry source.

The garage building including ground-floor retail and top-floor office space generates net operating income of $2 million. Landlord termination options would enable a redevelopment to begin in 2018.

Newmark Grubb Knight Frank represented the seller, Boston-based Intercontinental Real Estate.

Oxford Properties Group, the real estate arm of the Ontario municipal employees’ pension fund, has acquired eight trophy office buildings in Boston and Cambridge since 2014. It’s interested in speculative development in Boston, CEO Blake Hutcheson said last year at an industry forum.