Investor cashes in on saucy business behind diamond shop
A commercial site shared by a well-known diamond dealer and a licenced brothel has quietly changed hands for $2.55m.
The 2023sq m freestanding site at 37 Upton Street, Bundall was sold to a private Gold Coast investor and is tenanted by two businesses, CTJ Jewellery and Utopia in Paradise.
CTJ Jewellery is promoted as the Coast’s largest diamond wholesaler to the public, and occupies the shopfront facing busy Upton Street.
The adult establishment is discretely located at the rear of the building with its own parking spaces. A flashing red light guides patrons inside to a gentlemen’s lounge.
Marketing agent Luke Wray of Ray White Industrial said the property returned approximately $193,768 in net annually and was situated in one of the Coast’s most sought-after commercial areas.
“It’s a pretty hot little pocket there on Upton Street and opposite the Gold Coast Turf Club,” Mr Wray said.
“The building itself is freestanding, which is another benefit, but probably the biggest thing is that even though they’re not the most savoury of tenants at the back, they do have a very long lease which provides an investor with added security.”
Mr Wray said Utopia in Paradise had nine years remaining on their lease, while CTJ’s lease was shorter but the business had been established at the premises since 2006.
“The investment market in southeast QLD, not just for the Gold Coast but also for Brisbane and the Sunshine Coast, is very, very strong for any sort of tenanted assets and this being just under the $3m mark was still within the price bracket for a lot of smaller private investors,” he said.
The property has a floor area of 1060sq m and 16 car spaces.