LITTLE PARADISE HOTEL 435 E. AVENIDA OLANCHA PALM SPRINGS, CA PRESENTED BY NICK ANANYAN P a g e

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1 LITTLE PARADISE HOTEL 435 E. AVENIDA OLANCHA PALM SPRINGS, CA PRESENTED BY NICK ANANYAN P a g e

2 TABLE OF CONTENTS DISCLAIMER 3 EXECUTIVE SUMMARY 4 INVESTMENT HIGHLIGHTS 5 THE OPPORTUNITY 6 BUILDING INFORMATION 7 AERIAL MAP 8 GOOGLE MAP 9 ASSESSOR MAP 10 FINANCIAL SUMMARY 11 WEBSITES 13 PICTURES 14 ABOUT TITUS TREALTY, INC P a g e

3 DISCLAIMER This Offering Memorandum has been prepared by Titus Realty, INC regarding the purchase of the property described herein at 465 E. Avenida Olancha, Palm Springs, CA (the Property ). The materials and information contained in this Offering Memorandum do not purport to be all- inclusive or to contain all of the information which prospective investors may need or desire. All materials have been developed by Titus Realty, INC and other sources and are subject to variation and withdrawal. No representation is made by Titus Realty, INC as to the accuracy or completeness of the information contained herein and nothing contained herein is or shall be relief on as a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Titus Realty, INC and its respective principals and employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Titus Realty, INC and its respective principals and employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property since the date of the preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon request to interested and qualified investors. 3 P a g e

4 EXECUTIVE SUMMARY Property Address: 435 E Avenida Olancha, Palm Springs, CA Property Description: This is a 9-unit boutique hotel located very close to down town Palm Springs Area. Purchase Price: $2,995,000 Total Living Square Footage: Total Lot Square Footage: 4,500 Sq. Ft. Building 16,928 Sq. Ft. APN: Zoning: R2 Year Built: 1960, Fully Renovated in 2014 Scheduled Gross Income: $556,952 Net Operating Income: $299, Cap 9.99% 4 P a g e

5 INVESTMENT HIGHLIGHTS For discriminating and savvy investor, Titus Realty is proud to present Little Paradise Hotel. High end boutique hotel nestled on a cul-de-sac of a serene residential area, South of Palm Springs, 1.5 miles from Downtown. Formally known, as Queen of Hearts, the hotel was bought by present owner in From 2014 to 2015 the hotel underwent close to Million Dollars in renovations. Little Paradise Hotel consists of 9 guest rooms, 8 of which are identical with full kitchen, central air, large bathrooms, and individual water heaters. The 9-th guest room has a queen bed and no kitchen. The hotel is surrounded by walls and lush greenery, creating the magic of being in an oasis in the middle of the desert. Virtually no noise or distraction from outside, complemented by picturesque mountain views from hotel grounds, it is a perfect place for privacy and total relaxation. Palm Springs, a famous resort town, is a desert oasis that boasts mid-century modern architecture, numerous recreational activities, and mostly sunshine days throughout a year. The city is close to Mount San Jacinto State Park and just 1-hour drive from Joshua Tree National Park. It is part of one of the fastest growing submarkets in California, experiencing enormous growth rate over the last 30 years with an influx of new developments and a diverse community. Palm Springs is also developing a $5 million-dollar park near downtown. In addition, the Palm Springs Accelerator Campus has actively procured new companies to assemble workforces in the Palm Springs area. The long-term potential of their efforts is expected to deliver an additional 3,400 high-skill, high-wage jobs, 80 new companies, and $711 million in revenue. 5 P a g e

6 THE OPPORTUNITY Location: One block from Palm Canyon, in an upscale residential and less windy area, on a cul-desac, in a less windy area of Palm Springs, this hotel is unusually quiet and serene surrounded by lush greenery for complete privacy. Design: Designed by well-known, Danielly Design Group from Los Angeles, the guest rooms, the kitchens and the bathrooms are high-end, eclectic and modern, yet comfortable and inviting. Guest Satisfaction: Only in a little over 2 years in operation, Little Paradise Hotel has achieved unusual success in guests satisfaction: 2017 Travelers Choice Award, Voted 11-th best boutique hotel in the country by Trip Advisor and in top 3% of all hotels worldwide by customer satisfaction with a score of 9.9, selected by hotels combined. Please check out our all rankings across all travel sites. Financial highlights: The hotel grossed over $550K in 2016 with virtually no marketing or advertising, generating an impressive CAP of over 10%. The new owner can effortlessly convert the owner s unit into additional, 10-th guest room. Bottom Line: You can buy an underperforming asset, spent time and money on renovating, manage it and hope for the best. Or you can buy this well-priced, cash generating asset and build upon it, making this gem even more profitable. 6 P a g e

7 BUILDING INFORMATION Number of Units 9 (10 with owner s unit available for booking) Building Square Footage 4,500 Lot Square Footage 16,928 Year Built 1960 Year Remodeled 2014 APN: Zoning R2 Air Conditioning Units 8 Central and 4 split systems Water Heaters 9 Laundry Machines and Dryers 2 Laundry Machines and 2 Dryers Refrigerators 2 Gazebo Fire pit 1 7 P a g e

8 AERIAL MAP 8 P a g e

9 GOOGLE MAP 9 P a g e

10 ASSESSOR MAP 10 P a g e

11 FINANCIAL SUMMARY (1 of 2) Property Address: 435 E. Avenida Olancha, Palm Springs, CA Property Type: Hotel Number of Units 9 Building Sq. Ft 4500 Price $2,995, Annual Scheduled Gross Income $556, Annual Expenses City of Palm Springs Transient Tax $57, Employee Expenses $62, Merchant Fees $12, Property Tax $37, Service: gardener, pool man, handyman $7, Supplies and amenities $13, Time Warner Cable $2, Water, Electric, Gas, Direct TV, Trash $24, Websites: Trip Advisor, Expedia, etc $40, Total Expenses $257, Net Operating Income $299, CAP 9.99% 11 P a g e

12 FINANCIAL SUMMARY (2 of 2) Down Payment (30 %) $898,500 Closing Costs $29, Loan Amount $2,096,500 Interest rate 4.25% Annual Debt Service Payment $123, Net Income after the debt service $175, Return on Investment 18.89% 12 P a g e

13 LITTLE PARADISE HOTEL WEBSITES Little Paradise Hotel Hotels.com Expedia.com Booking.com Yelp.com Tripadvisor.com Orbitz.com Facebook.com Priceline.com 13 P a g e

14 PICTURES 14 P a g e

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20 ABOUT TITUS REALTY, INC. Titus Realty, Inc. is a commercial and residential real estate company serving Los Angeles Area since The firm has paved its way in the local market by building strong, successful relationships through local investors, business developers, and leading businesses. Titus Realty has brokered over $500 million in commercial and residential real estate transaction since Respected throughout the industry for our experience and knowledge of the niche residential, residential income and commercial markets, Titus Realty Inc. is dedicated to meeting and exceeding all of your real estate needs. Having brokerage, investment, management, development, consulting, and facility maintenance services within the same company allows our clients to experience a true fullservice real estate company embracing all of our clients needs. Most of the company s multi-year experienced agents were raised in Los Angeles and have long, deeply rooted relationships in the community an asset our clients find as highly beneficial. Nick Ananyan Broker titusrealty@yahoo.com 20 P a g e