A former brothel in Logan, Queensland, is on the market with price expectations of $900,000.
The property, at 26 Magnesium Drive, Crestmead, had been used as a brothel since 2005. Initially opened as Resort 26 on November 19, 2005, it was later rebranded as Club 26.
Club 26 ceased operating in March this year, according to the state’s Prostitution Licensing Authority.
Listing agent Jamie Davey, director of commercial sales and leasing at Ray White Marsden, said a new tenant had applied for a brothel licence in March but the COVID-19 pandemic had slowed down the approval process.
“The brothel licence is pending. A new operator took over the business in March just before COVID so unfortunately they are still waiting for approval. The tenant has signed a new five-year lease with five-year options,” he said.
The new lease is $67,473 a year, with 3 per cent annual increases, but because of the pandemic the tenant is paying half that, plus all the outgoings, he says.
The 450-square-metre property, which has been on the market since late 2019, is being sold for the first time in 20 years, according to Mr Davey.
“The owner has decided to move on and free up some capital [and] that is why he decided to sell,” he said.
Mr Davey said interest in the property had been strong.
“There is a lot of demand for leased assets around the Logan area, however, for this particular investment buyers find it difficult to receive funding from banks to secure the site and that is why it has been available for almost 12 months,” he said.