Desert Sun Resort Palm Springs, CA

KW Commercial – Professional Realty Group

Richard DeCarlo Kenneth Williams Call/ Text 760-578-1466 Call/ Text 760-413-4376 Fax 760-770-9510 Fax 760-770-9510 70-005 Mirage Cove Drive [email protected] [email protected] Rancho Mirage, CA BRE# 00513791 BRE# 01886412

BRE# 01417409 Desert Sun Resort

TABLE OF CONTENTS Executive Summary______3 Investment Highlights______4 Property Details______5 Courtyard Rooms______6 Location______7 Market Overview______8 Location Overview______9 Resort Map______10 Disclaimer______11

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies. EXECUTIVE SUMMARY INVESTMENT OVERVIEW The Professional Realty Group of KW Commercial has been retained as the exclusive real estate broker to represent and offer for sale the Desert Sun Resort, a fee simple property consisting of 33 guestrooms situated on 2 lots totaling approximately 1.67 acres and identified as Assessor Parcel Number’s (APN) 507-024-020 and 507-024-025. Desert Sun Resort also has an exclusive condo rental pool to add to their 33 rooms. The Desert Sun Resort is the premier adult-only clothes free travel destination in the world today. DSR is set on multiple acres of beautifully landscaped grounds behind secluded gates, with endless views in the heart of Palm Springs, California. This resort is truly a one of a kind Mediterranean style resort that has access to three heated pools, two heated Jacuzzi's, lighted tennis court, full spa, restaurant, and large grassy areas to relax. USA Today called the Desert Sun Resort “The jewel in the crown of nudist resorts”. While the Desert Sun Resort has the charm of a small secluded inn, it has the luxury amenities of a full-service resort. It is one grand resort that flows seamlessly from romantic courtyards through rivers and waterfalls. What looks like a walled-in, austere complex from Indian Canyon Drive is actually a resort filled with rolling, plush green lawns surrounded by beautiful Olive trees and Palm trees placed between the endless streams, water features, and pools throughout the resort grounds. When walking around the grounds all five of your senses are engaged constantly. You can lounge, eat and play tennis – all in the nude. It’s a retreat. Get away from your job, the real world, and to just escape. Affluent people from all over the world choose to enjoy their vacation at Desert Sun Resort and DSR has more repeat guests’ visits than any other hotel in Palm Springs. This nudist retreat, which has 33 rooms and access to 59 condos, is one of the most exclusive and celebrated properties in Palm Springs and is an integral part to the Palm Springs tourist community.

ADR of $200 & Rising Minimal Local & Worldwide Competition Freestanding Spa Facility with Three Dedicated Treatment Rooms Full Restaurant / Bar with Seating for 60 Guests Full Liquor License Over Eleven Sources of Revenue other than Room Reservations Experienced Staff Steady Growth Year After Year Great Reputation with Guests Can Run Efficiently without a Hands-On Owner Room for Expansion Solar - 170 Panels Paid in Full and Covered with Warranty Free and Clear Property Deed

County Riverside County Parcel Number 507-024-020, 507-024-025 Ownership Fee Simple Interest

# of Rooms 33 Guest Rooms Year DSR Began: 2008

Years Established: 25 Years Site Area Hotel / Office / Café : 9,900 SF Courtyard: 4,990 SF Spa: 1,000 SF Total Grounds: 1.67 Acres

Franchise Independent Boutique Hotel Floors/ Layout 3 separate buildings, One being 2 story. Facilities & - 33 Guest Rooms plus additional Condo Rental Pool Amenities - Spa with 3 Treatment Rooms and a Reception Area - 24/7 Front Desk - Gift Shop that sells Perishable and Non-perishable items - Restaurant with Seating for 60 - Bar with Full Liquor License - 2 Pools and 1 Jacuzzi - Lighted Tennis Court - Exercise Room - 2 Firepit Relaxation Areas Equipment: Everything is owned outright with no leases on equipment

Rediscover the Golden Age of Palm Springs’ classic glamour. Relax where every room is unique in its shape and design reflecting the classical style and elegance of 1950’s Palm Springs and evoking the era of a private movie star hide-away complete with a secluded garden patio setting with terra cotta tiles. The Courtyard features 11 exclusive rooms and suites nestled in an intimate Spanish-style courtyard and features Mid- Century Modern Design. These rooms were taken out of service in 2016 and the owner performed a complete rebuild on all 11 units and large gym. The rooms now consist of modern furniture with clean lines that appeals to every guest, while also improving the guests’ comfort level with whisper quiet mini-split units. Since putting them back into service these rooms are by far the most popular rooms at the resort. They offer seclusion from the rest of the resort grounds with a private courtyard, but yet are steps away from all of the activities at the Oasis Café, quiet pool, jacuzzi, tennis court, and activity pool.

Courtyard rooms start at $220 a night and are the first rooms to sell out.

Rich in history and blessed with gorgeous weather, 354 days a year, Palm Springs is a preferred destination of travelers from all over the world. Nestled at the base of the San Jacinto Mountains, Palm Springs is known for its crystal blue skies, year- round sunshine, stunning landscape, palm tree lined streets and starry nights. A new 2018 study commissioned by the Greater Palm Springs Convention and Visitors Bureau (CVB) is showing growth in the local tourism industry. According to the study, visitor spending in Greater Palm Springs has increased 10 percent in the last two years, to $5.5 billion, and one in every four jobs is sustained by the tourism industry. Among the study’s other findings included: - Lodging revenue surged 15 percent over 2015, and room demand grew by 6 percent. - Tourism in Greater Palm Springs generated $1 billion in tax revenues in 2017. - Just over 1 million passengers came through Palm Springs International Airport (PSP) in 2017, 12 percent more than in 2015, with international arrivals from Canada accounting for an increasing share of the total. Palm Springs is NEW again. The $400 million renovation of downtown is (nearly) complete, and the changes are mega. The Downtown Project has been the key to revitalizing the city with its mix of retail, restaurants, office space, and hotels with a fresh face that plays on the city’s pristine midcentury architectural past. Palm Springs retains the small-town, village atmosphere from the 1920s while still becoming the new 21st century hotspot.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies. LOCATION OVERVIEW Palm Springs, California lies on the western edge of the Coachella Valley, within the Colorado Desert. Located approximately 110 miles southeast of Los Angeles and 140 miles northeast of San Diego, it’s an easy two-hour drive. The permanent year-round population is about 45,000, and doubles during the winter season. With sun-kissed weather and drop-dead gorgeous scenery, it’s no wonder Palm Springs is like no place else and a comeback as Hollywood’s playground with a growing nightlife, burgeoning art scene and edgy vibe. Climate and Geography Palm Springs has more than 350 days of sunshine with less than 5 inches of rain per year. Winter temperatures average in the 70’s with nights in the mid-40’s. The dry desert heat of summer pushes daytime temperatures into the 100’s, which is enjoyed by sun seekers from around the globe, especially nudists. With warm days and balmy nights, the ambiance is positively seductive. It is the most perfect location for nudists than anywhere on the globe with more revenue producing days than even fully-clothed hotels in Palm Springs. The geography of Palm Springs is what creates the famed warm, dry climate. At 487 feet above sea level, Palm Springs is sheltered by the Little San Bernardino Mountains to the north, the Santa Rosa Mountains on the south, and the San Jacinto Mountains to the west. Local Events Palm Springs’ tourism continues with double digit increases. It could be the surge of super hip (and becoming super large) events like the Palm Springs International Film Festival, Modernism Week, and Coachella and Stagecoach Music Festivals. Airports Traveling to Palm Springs is easier than ever thanks to their newly renovated Palm Springs International Airport (PSP), located just minutes from downtown Palm Springs and the Convention Center. The airport is served by numerous carriers from major cities. As an alternative, visitors may choose to fly in to Ontario International Airport (ONT), located approximately 70 miles west of the Palm Springs Convention Center in the center of Southern California. It is a medium hub, full-service airport with commercial jet service to major U.S. cities and through service to many international destinations. Los Angeles International Airport (LAX) offers the greatest airline options and schedules. Just a 1.5 hour drive to Palm Springs, this can be a nice choice for travelers who would also like to include Los Angeles in their itinerary.

Condo Rental Pool DISCLAIMER

This Confidential Investment Offering Memorandum (“Memorandum”), which is intended solely for your limited use and benefit in determining whether you desire to express any further interest in participating in the acquisition of the Desert Sun Resort “Property/ Hotel” in Palm Springs, CA. By accepting this memorandum, the recipient agrees to comply strictly with the terms and conditions of this Confidentiality Agreement previously executed and delivered to KW Commercial – P.R.G. by the Recipient with respect to this memorandum and all information contained herein, and to use this memorandum only for the purpose of evaluating the offering made hereby.

This Memorandum was prepared by KW Commercial – P.R.G. and has been reviewed by the Owner. It contains select information pertaining to the Property and does not purport to be all- inclusive or to contain all of the information , which prospective investors may desire. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

More detailed information and an opportunity to inspect material related to the Property will be made available to interested and qualified prospective investors. Neither the Owner nor KW Commercial – P.R.G. nor any of their respective officers have made any representation or warranty , expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitments or obligations shall arise by reason of this memorandum or its contents. The Agent, Owner, and the Manager reserve the right to engage in discussions or negotiations with one or more recipients or other perspective investors at any time without notification to, or other obligation to, any other Recipient or prospective investor. The offering is subject to change in terms or termination without notice.

The Agent reserves the right to require the return of this Memorandum and any other material provided to the Recipient at any time. Photocopying or other duplication of the Investment Offering Memorandum in part or entirety is not authorized.