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www.littleparadisehotel.com

LITTLE PARADISE HOTEL 435 E. AVENIDA OLANCHA PALM SPRINGS, CA 92264

PRESENTED BY NICK ANANYAN

818-786-5511

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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. 20

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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 92264 (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.

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EXECUTIVE SUMMARY

Property Address:

435 E Avenida Olancha, Palm Springs, CA 92264

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:

4,500 Sq. Ft. Building

Total Lot Square Footage: 16,928 Sq. Ft.

APN: 508-353-019

Zoning: R2

Year Built: 1960, Fully Renovated in 2014

Scheduled Gross Income: $556,952

Net Operating Income:

$299,105.48

Cap

9.99%

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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 2014. 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.

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THE OPPORTUNITY

Location:

One block from Palm Canyon, in an upscale residential and less windy area, on a cul-de-

sac, 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.

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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: 508-353-019

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

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AERIAL MAP

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GOOGLE MAP

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ASSESSOR MAP

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FINANCIAL SUMMARY (1 of 2)

Property Address: 435 E. Avenida Olancha, Palm

Springs, CA 92264

Property Type: Hotel Number of Units 9 Building Sq. Ft 4500 Price $2,995,000.00

Annual Scheduled Gross Income $556,952.00

Annual Expenses

City of Palm Springs Transient Tax $57,644.53

Employee Expenses $62,000.00

Merchant Fees $12,116.49

Property Tax $37,437.50

Service: gardener, pool man,

handyman $7,500.00

Supplies and amenities $13,137.00

Time Warner Cable $2,400.00

Water, Electric, Gas, Direct TV, Trash $24,632.00

Websites: Trip Advisor, Expedia, etc $40,979.00

Total Expenses $257,846.52

Net Operating Income $299,105.48 CAP 9.99%

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FINANCIAL SUMMARY (2 of 2)

Down Payment (30 %) $898,500 Closing Costs $29,950.00 Loan Amount $2,096,500 Interest rate 4.25% Annual Debt Service Payment $123,762.24

Net Income after the debt service $175,343.24 Return on Investment 18.89%

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LITTLE PARADISE HOTEL WEBSITES

Little Paradise Hotel

Hotels.com

Expedia.com

Booking.com

Yelp.com

Tripadvisor.com

Orbitz.com

Facebook.com

Priceline.com

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PICTURES

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ABOUT TITUS REALTY, INC.

Titus Realty, Inc. is a commercial and residential real estate company serving Los

Angeles Area since 2000. 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 2000. 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 full-

service 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

818-786-5511

titusrealty@yahoo.com