Strong Point Purchase of Bordello Nearly Complete

Strong Point Inc. said it expects to complete by June 10 the purchase of the Mustang Ranch bordello near Reno, Nev., for $18 million.

John D. Davis, president of Irvine-based Strong Point, declined to discuss details of the transaction. “The backers have requested confidentiality at this time,” he said. The Mustang Ranch property, which includes 510 acres of adjacent land, has been in escrow since August, 1985.

Strong Point is purchasing the brothel from Joe and Sally Conforte.

Strong Point, whose stock is sold over-the-counter, already operates Sue’s Bordello in Elko, Nev., a 12-room operation it purchased last year for “less than $1 million,” thus becoming the first publicly traded company to own a brothel. “The final price (for Sue’s) has not yet been determined because of some additional negotiations,” Davis said.

The Mustang Ranch has 108 rooms.

Strong Point said it expects to complete filings for listing with the National Assn. of Securities Dealers after the Mustang Ranch transaction is complete.

Davis said the company now has about 4,000 shareholders and about 5 million common shares outstanding.

Nevada is the only state with legal prostitution.