A document shows that the "marketing and networking fellowship group" had registered as a business with the secretary of state's office, but it's incorporated as a non-profit club and city officials say that is how it managed to slide under the radar until it was almost ready to open.
On 101 Bastion Lane, stands a non-descript commercial building, one of many commercial buildings behind an east Raleigh's shopping center.
City officials say they only recently found out the non-profit, members only club planned to offer a place for men to have sex with other men 24/7.
Ralph Gregory owns Security Force, a business one building over.
He sells alarm and home theatre systems and the idea of an all-men sex club next door didn't sit well with Gregory.
"It bothers me from a moral standpoint, Gregory said. "It also bothers me from the customers that I have that would come to our office. They may be turned off that something like that would be taking place next door."
Another business neighbor says they were curious when they noticed men moving mattresses and bar stools into the building. They say they now understand.
City officials say when they saw advertisements enticing men to join the club for $79 a month for themed play areas, clean linens and video porn, they decided to investigate.
Since the business wasn't open yet, inspectors couldn't get in so they called the landlord.
"Our staff has been told by the agent or the owner that he did not know the nature of the club and they he was going to give notice to vacate," Raleigh City Manager Russell Allen said.
"A good decision by the landlord and I applaud the city for following up and making sure something like that doesn't take place in our city," Gregory added.
But if another landlord allowed a non-profit club like it to open here in the capital city would city leaders have any recourse?
The city manager says that may be something the city council may want to look into.