Joshua Tree Resort Investor Package

ROCA

INVESTOR DECK February 2019

Content LOCATION

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EXPERIENCE

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TEAM

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OFFERING

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APPENDIX

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Confidentiality The contents of this proposal and any attachments are confidential and intended solely for the addressee. The information may also be legally privileged. This proposal is sent in trust, for the sole purpose of delivery to the intended recipient. Any use, reproduction, or dissemination of this Proposal is strictly prohibited without the permission of the Sponsor Group.

Disclaimer By receiving this proposal you acknowledge investment in real estate companies are risky by nature and that this presentation contains forwardlooking statements and projections that are based on estimates and assumptions, and that should not be relied upon in determining whether to invest in ROCA. Some images herein are sourced from the world wide web. M-Rad Inc. does not hold liability for the use of these images or for copyright infringement.

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Location

Site

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Experience

Master Plan HOTEL SUITES RESIDENCES LUXURY VILLAS RECORDING STUDIO RESTAURANTS BARS FITNESS CENTER POOLS & SPA OUTDOOR YOGA SCREENING ROOM AMPHITHEATER ART GALLERIES RETAIL HELIPAD 16

TO BE REPLACED

ARTIST STUDIOS & GALLERIES STORAGE RESTAURANTS & ENTERTAINMENT PRIVATE RESIDENCES 50-ROOM HOTEL GROWING FIELDS VIP RECORDING STUDIO

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Site Master Plan

Program

Lobby Lounge and Fresh Bar Upon arriving at ROCA (via private ROCA car from airport, personal car, helicopter, etc.), guests are welcomed to “The Pause” portion of the ROCA experience. At the lobby lounge and Fresh Bar, guests are received by a host who shows them the welcome facilites and introduces them to ROCA’s concept, amenities, and activities. This happens in the lobby lounge instead of a traditional “front desk,” making everything feel natural and effortless.

Guests are invited to relax after their trip— offered refreshing house-made drinks from the Fresh Bar and shown stores where they can buy clothes and other products that are adequate for the desert experience (hats, linen clothes, sandals, wellness goods, etc.). At the lobby lounge and Fresh Bar, the transformative ROCA experience has just begun.

Suites

Waiting for guests after “The Pause,” will be their rooms with their keys on the desk, clothes unpacked, and fresh water by the patio. ROCA offers 50 guest rooms in the hotel portion of the site. There will be 40 typical guest rooms (400 - 800 sqft.) featuring sweeping views of the surroundings, as well as private patio space and lounge furniture. There will also be 8 luxury suites (1,000 - ,1500 sqft.) with similarly stunning view portals and private amenities. A highlight of ROCA, however, will be the 2 rentable residences/villas (2,500 sqft.), each featuring full kitchens, private pools, personal chefs, as well as other high-end touches only ROCA could provide. Once reaching their sleeping accomodations, the “check-in” process will be complete, without the guests needing to fill out any forms, ask for WiFi, ask for assistance with their bags or any of the other typical hotel processes.

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Program

Spa & Fitness Center The full service wellness center at ROCA offers simple yet effective programs designed to help you rediscover your optimum level of wellness. Treatments will not only cleanse your body, mind and soul but also bring about internal balance, giving a boost to your energy and vitality by infusing elements of Ayurveda, yoga, massage, fitness, hypnotherapy, pranic healing and nutrition. Features such as temperature-controlled plunge pools, restorative yoga pavilions, saunas and steam rooms, meditative sound baths, wellness coaches, and desertinspired spa treatments are all part of the program to help guests reach an optimal balance in body and mind

Conditioning At ROCA we have created simple yet effective programs designed to help you rediscover your optimum level of wellness. Our treatments will not only cleanse your body, mind and soul but also bring about internal balance, giving a boost to your energy and vitality by infusing elements of Ayurveda, yoga, massage, fitness, hypnotherapy, pranic healing, and sound baths.The programs include in a minimum 3 nights stay, Ayurvedic consultation, nutritionally balanced meals, workshops, art therapy, yoga, meditation and spa treatments.

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Program

Villas ROCA will also feature 2 villas available for extended stay or purchase. These villas will be around 2,500 square feet and feature all the best amenities the resort has to offer— including but not limited to, a full kitchen, private pool and spa, personal chefs, 3-4 bedrooms, exclusive views to Joshua Tree and the Pipes Basin and the 640 undeveloped acres dispersed across the ROCA campus houses. These homes feature consummate privacy just minutes from the main hotel area with a pared-back minimal aesthetic that amplifies the unique landscape features surrounding.

Rentable Spaces The ROCA campus will also house a sort of “downtown” area that will feature rentable spaces for unique retailers that will offer a curated variety of artisan clothing, jewelry, textiles, furniture, art, and home accessories. The rentable spaces will also be available for commerical purposes like organic markets, office spaces, art and recording studios, and other fields.

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Program

Restaurants ROCA will be home to 2 restaurants— 1 with public access (100 seats, 50 bar seats) and 1 exclusive for guests (100 seats, 20 bar seats). Private terraces will be available at both locations by reservation for romantic dinners or private meetings. Furthuring the mission of ROCA, these restaurants will create a harmonious and symbiotic relationship between the beautiful Joshua Tree landscape and the luxury experience the patrons will be expecting. Locally sourced and on-site farmed produce can be anticipated to be a main feature of the dining experience at ROCA, deepening the connection to the site and ensuring that sustainable and ethical methods are employed to reach those goals.

Entertainment & Recording Studio Among the plethora of other amenities that ROCA provides, the site will also aim to amplify the importance of the arts. By creating space for recording and art studios, ROCA will help bring a creative energy to the site.

Artists and musicians will be able to use these unique spaces to create art that could only be cultivated in the beauty of the Joshua Tree landscape and sky. On site will also be an outdoor amphitheater near the Basin, event and concert spaces with separate access, bars and nightlife, screening rooms, an observatory, game rooms, and other types of program to keep guests and newcomers entertained and always connected to nature.

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Program

Hiking & Exploring One of ROCA’s finest features is its close proximity to some of the best hikes and areas to explore that the American West has to offer. To the immediate west of the site is the Black Lava Butte Trailhead, one of Joshua Tree’s best hidden secrets. A bit further south you can find High View Nature Loop Trail and Black Rock Canyon Trail, with Hidden Valley Nature Trail a little bit further east. Along with all the top-notch hiking, this area is home to many peculiar art installations like The Rhythm of Life, situated on a hillside, Desert Christ Park, and Lee Madison Sculpture Garden. ROCA will also be home to many of its own areas to explore, given that the site is so unique and expansive.

Desert Sports ROCA’s isolated location allows for the opportunity to enjoy all sorts of remarkable desert sports and experiences.

Examples of these include but are not limited to, four-wheeling, dirtbiking, mountain biking, dune-buggying, hot air balloon rides, bocce ball, guided rock-climbing, kayaking at Big Bear Lake, horseback riding, among others. Guests will be able to let loose through some of the more extreme sports, or go the meditative route, enjoying the sights and sounds of the high desert.

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Sustainability

Earth Sheltering Built Environments

Earth sheltering, occupied basements, or earth tubes reduce heat loads in very hot dry climates because the earth stays near average annual temperature.

Outdoor Spaces

Sunny wind protected outdoor spaces can extend living areas in cool weather (seasonal sun rooms, enclosed patios, courtyards, or verandas)

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Sustainability

Wind Protection

Traditional passive homes in hot dry climates used enclosed well shaded courtyards, with a small fountain to provide wind protected microclimates.

High Mass Construction

Traditional passive homes in hot dry climates used high mass construction with small recessed shaded openings, operable for night ventilation to cool the mass.

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3 Brand

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Color Palette

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Material Palette

Attire

Resort Attire As a style, resort wear may be associated with swimsuit cover-ups, big hats, and flip flops, but it is so much more. As a clothing style, this year-round fashion can include a number of items that are casual, yet very stylish. With breathable fabrics that typically require less ironing and fuss, resort daywear will typically evoke ideas of travel to exotic, beautiful locales. Evening wear can include more formal outfits including fashionable evening dresses, suits, and dinner jackets.

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Pre-Arrival Experience TO BE REPLACED

Experience The guest experience does not begin when a guest arrives in the hotel lobby. Rather, it starts the moment a potential guest has their very first interaction with your hotel. The hotels that acknowledge and embrace this can lay the groundwork for a memorable stay while those that ignore this initial touchpoint will stumble out of the gate. Roca will provide guests with all the important information pertaining to their reservation, then inquire if they have any particular needs or wants during their stay. This will not only leave the guest impressed with the customer service, but will also ensure your staff are not overburdened with last minute requests once the guest arrives.

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Social Media TO BE REPLACED

TO BE REPLACED

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Pre-Arrival Present

Social Media

Present

With mobile phones and devices becoming the most relied upon tool for people booking their holidays, hotels need to ensure that everything from their landing pages to their email correspondence is optimized for mobile.

It’s important that every online interaction a guest has with your hotel is smooth and unhindered, and that communications between the two are always easily accessible.

Hotels around the world have invented many ways to welcome guests and bid them good-bye. Before arrival, guests will receive a luxurious robe accompanied by a pre-arrival form to ensure that their service is as seamless and tailored as possible. When they complete the form, the resort will know in advance exactly what guests want and expect the moment they arrive. The form will ask for basic travel information, such as your name, arrival and departure dates and times, airline, and contact info.

Logo

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4 Team

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Development & Design M-RAD’s

mission is to revolutionize the architecture industry by creating

bespoke solutions to universal problems. Our unique, multi-faceted business model allows us to engage in every step of the architectural process; from design and branding to business and real estate development. By expanding our scope, we can create enhanced experiences, allowing communities and cities to thrive.

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M-Rad Partners

STEVE AND PARTNERS

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5 Opportunity

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Neighboring Hotels LA SERENA VILLAS Originally built in 1933, this historic hotel sits on over an acre of landscaped grounds in the heart of downtown Palm Springs, walking distance to the famous Palm Canyon Drive. The stunning San Jacinto mountains are the backdrop for this luxury boutique hotel. The secluded private villas each have a private patio, complete with a romantic claw foot tub, fire-pit, and built in benches. Amenities include 18 guest rooms, spa, restaurant, bar, and roof top lounge.

L’HORIZON RESORT & SPA This 1950’s gem served as a playground for Hollywood A-Lister’s and U. S. Presidents alike. Now, redeveloped as a luxury resort, this 21 & up only resort and spa sits on 3 acres of manicured desert grounds. Amenities include 25 bungalows, spa, yoga and personal training, dining, pool and event spaces.

THE ROSSI HOTEL Though newly reopened as The Rossi Hotel in 2017, the property has been a notable hotel destination since the 1920’s, originally known as “The Wigwam.” Each suite boasts a private patio and jacuzzi, allowing the guest experience to become one that is truly secluded and restorative. Amenities include 2 full sized swimming pools, 12 suites, in-room spa treatments and private dining

THE DESERT LILY An intimate bed and breakfast and desert vacation rental retreat in the Joshua Tree Highlands, five minutes from the west entrance of Joshua Tree National Park. Amenities include 3 bed and breakfast suites, 4 selfcatered cabin rentals, and event spaces.

JOSHUA TREE OASIS The Joshua Tree Oasis is a small lodging accomodation located in the Joshua Tree National Park. Amenities include 2 on-site casitas, jacuzzi and pool, gardens, barbeque and patios, and easy access to all the outdoor activities Joshua Tree has to offer.

29 PALMS INN A small resort and inn located in Twentynine Palms on a 70-acre property, founded in the 1930’s. Amenities include 9 adobe bungalows, 3 suites, 4 cabins, 7 guest houses, 2 vacation rentals, event spaces, pool, and dining.

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PALM SPRINGS

L’ H O R I Z O N

PALM SPRINGS

THE ROSSI HOTEL

PALM SPRINGS

T H E D E S E R T L I LY

JOSHUA TREE

JOSHUA TREE OASIS

JOSHUA TREE

29 PALMS INN

TWENT YNINE PALMS

ROCA

FLAMINGO HEIGHTS

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Price Comparison

$4,998

$1,998

$1,798

$598

$10,000

$2,290

$6,000

$1,196

$1,139

$949

$929

$696

$496

$350

$496

$350

$800

$800

$800

$800

$700

$300

$630

$240

XXX

XXX

XXX

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LA SERENE VILLAS

PALM SPRINGS

L’ H O R I Z O N

PALM SPRINGS

THE ROSSI HOTEL

PALM SPRINGS

T H E D E S E R T L I LY

JOSHUA TREE

JOSHUA TREE OASIS

JOSHUA TREE

29 PALMS INN

TWENT YNINE PALMS

ROCA

FLAMINGO HEIGHTS

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Amenity Comparison

Project Phases

12 MONTHS PHASE 1: ENTITLEMENTS & SOLAR FARM

18 MONTHS PHASE 2: INFRASTRUCTURE DEVELOPMENT

36 MONTHS PHASE 3: CONSTRUCTION

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Ask $750,000 ENTITLEMENTS

$1,750,000 LAND

$2,500,000 TOTAL

$250,000 MINIMUM INVESTMENT (INVESTMENT COVERS ENTITLEMENTS AND LAND TRANSFER IN OPPORTUNITY ZONE)

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Deal Structure M-RAD 5% EQUITY IN LAND

ROBOTT LAND COMPANY 10% EQUITY IN LAND

INVESTOR 85% EQUITY IN LAND

100% TOTAL

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Investment Opportunity AMOUNT ARCHITECTURE

$225,000

9%

ENGINEERING

$75,000

3%

CONSULTANTS

$50,000

2%

ENTITLEMENTS

$65,000

2.6%

PERMIT FEES

$200,000

8%

TAXES & FEES

$100,000

4%

LAND

$1,750,000

70%

LEGAL FEES

$35,000

1.4%

TOTAL

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%

$2,500,000 100%

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M-RAD INC. 6086 Comey Ave Los Angeles, CA 90034 MATTHEW ROSENBERG E: matthew@m-rad.com M: 323-202-0950

ROCA APPENDIX

LAND USE

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FAULT ZONE

WIND

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SKY COVER

TEMPERATURE

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PSYCHOMETRIC CHART