Brothels a beacon for commercial property investors

Brothels remain hot property on the commercial property market, with a number of well-known and longstanding venues currently for sale.

Interest in commercial properties leased as brothels shows no sign of waning, with their traditionally sizeable parcels of land and good locations making them a beacon for investors.

Agents say developers are also quick to circle brothels when they come up for sale, while other investors view them as a solid passive investment.

Here are four brothel-leased properties currently for sale.

Liverpool, NSW

The brothel has been in the Liverpool building for about 30 years.

Among the properties currently on the market is the recently listed 233 Northumberland St at Liverpool in Sydney’s west, which is much more than just a brothel.

While the Casablanca Brothel business (pictured also at top) occupies a significant piece of the property – and has done so for about 30 years – there’s also a busy Middle Eastern and continental grocery store, with part of it sub-leased as a jewellery shop.

Elders Commercial agent Frank Torcaso says the property has already seen significant enquiry from investors interested in developing it. The 701sqm parcel of land includes a rear car park, a total building area of 501sqm and B3 Commercial Core zoning.

“I’ve had a lot of interest, just because the Liverpool CBD is a very tightly-held market,” Torcaso says.

The brothel is in a part of the Liverpool CBD that is bring targeted by developers.

“A lot of the enquiry we’re getting is more geared towards looking to the future and redeveloping, because there’s a lot of mixed-use development happening in Liverpool at the moment.”

But he says the brothel will likely remain there for some time, with the current lease including options up until 2035.

The brothel has a large car park at the rear.

“Being that we’ve got really long leases on there, some developers are shying away from it, but others are seeing it as good passive investment.”

Torcaso says that while some buyers can be reluctant to take on a brothel as a commercial property investment, the tenant’s longevity speaks for itself.

“This business has been established there for 30 years,” he says.

Huntingdale, VIC

The Huntingdale brothel has a number of themed rooms.

Home to “Club Pleasure”, which has just over four years to run on a five-year lease, this Huntingdale property in Melbourne’s south-east is long-established, and features a number of specially fitted-out theme rooms.

With 186sqm of land and a building area of 200sqm, the property has on-site parking at the rear, and returns $80,000 in annual rent.

Offered for sale by Axis Elsternwick’s Daniel Liberman, Darryl Level and Saul Akoka, it also has 3% annual rent increases built into the lease.

Singleton, NSW

The brothel at Singleton in New South Wales.

Here’s one of the most affordable brothel-leased properties you’ll find on the market, anywhere.

The property at Singleton, north-west of Newcastle, has a price tag of just $400,000 and is the only licensed brothel in the area, though agents from Chapman and Frazer Real Estate say it lends itself to a number of uses and has redevelopment potential.

While the property could continue trading as a brothel, it is zoned for mixed-use and is at the centre of a precinct that adjoins retail centres and bulky goods outlets.

Spanning 180sqm, the two-level building occupies a 478sqm site, has off-street parking, a concrete driveway and a storage shed at the rear.

Rockdale, NSW

The former Black Garter brothel at Rockdale, south of Sydney.

While this prime property at Rockdale in Sydney’s south-west is fitted out as a brothel, it presents as a blank canvas for buyers.

Previously operated as the Black Garter brothel, the property features two buildings, three levels, has 16 rooms and is now offered with vacant possession.

But it’s the development potential that is likely to generate the most interest, with the site zoned to allow for building heights of 22m, and plans already lodged for a 17-room boarding house.

Presented to the market by Ray White Canterbury’s Leon Roussakis, the 556sqm property is for sale via expressions of interest.