Just looking at the title ("Downtown bordello to be replaced with senior housing") this sounds like an extremely bad deal
At the asking price of $1,2 Million (seems to be due to the lot size), I do not see many takers who wish to buy and re-develop the existing building.
Me, I would find preserving the last bordello a worthwhile cause, but I seriously doubt banks and investors think likewise.
What I find important is that it's ensured the new building is in fact going to be built before demolishing the old one. Otherwise we may just end up with another parking lot.