Entrepreneur Brent Pollard has taken Mosmans Restaurant off the market after a buyer's offer for the riverside eatery fell $1 million short of his expectations.
CBRE Hotels senior director David Kennedy said Mr Pollard had opted to hang onto the Mosman Park business rather than settle for an unacceptable deal.
The owner sought had sought expressions of interest for the restaurant built over the Swan River that included moorings for seven boats and a three-bedroom residence.
Mr Kennedy said two buyers were shortlisted when the deadline passed but only one came reasonably close to what Mr Pollard would have sold for.
"We didn't get an offer that was suitable, unfortunately," Mr Kennedy said. "We couldn't bridge the gap."
Mr Kennedy said while Mr Pollard remained open to offers, the restaurant would not be actively marketed.
"If something comes up in the meantime, we've been alerted to keep him in mind," Mr Kennedy said. "There's no hardship for the owner. It was just a decision that he thought he might sell the property and move into something else.
"It's not really a major consequence for him because it makes good money."
The 3375sqm property is subject to a lease controlled by State Government agency the Swan River Trust. It was originally developed by 1980s identity Dallas Dempster.
Mr Pollard has spent $1.4 million on improvements since buying Mosmans, formerly known as Meads, in a distress sale by restaurateur Warren Mead in 2008.
The British businessman also bought miners' mecca Black Tom's in West Perth before selling it this year.