1081Npalm canyon

C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M

Palm Springs

a Frey-Clark Historic Building

C O N T E N T S

EXECUTIVE SUMMARYIntroductionInvestment Highlights

PROPERTY OVERVIEWProperty OverviewProperty Site PlanGallery

MARKET OVERVIEWPalm Springs OverviewBuilding History

ECONOMIC ANALYSISProformaProfit and Loss

C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M

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The information above has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

MICHAEL KASSINGERRealty TrustSenior Vice President760-668-2322michael@michaelkassinger.comBRE 01213797

REPRESENTED BY

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INTRODUCTION

12,610+- SF OFFICE BUILDING OFFERED AT $3,650,000 IN PALM SPRINGS, CA

Realty Trust is pleased to present the opportunity to acquire the 100% fee simple interest in 1080 North Palm Canyon, Palm Springs, CA (the “Property”), a best-in-class historic constructed office building with adjacent parking lot. The property is located at the corner of Palm Canyon Drive and Via Lola, in Palm Springs’ Uptown Design District, a smart contemporary office building which is also a progressive piece of modern architecture.

Highly sought after architects Albert Frey and John Porter Clark, designed the building, which is a part of Modernism Week each year (completed in 1948) The location of the building is in a district filled with chic boutiques and high-end vintage furniture stores. Style hunters come from all over the world for good shopping and great architecture.

Multiple tenants together occupy the entirety of the 13,005 rentable square feet for 100% occupancy.

INVESTMENT HIGHLIGHTS

• Multi-use building with Executive Offices and two 2ndfloor apartments

• Coldwell Banker occupies 3,600 sq ft on the corner ofNorth Palm Canyon and Via Lola

• Iconic building designed by Albert Frey and JohnPorter Clark

• Basement for extra storage area

• Located in Palm Springs’ Posh Uptown Neighborhood

• 100% Leased

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Rentable Building Area: 13,005 SFNo. Stories: 2

Property Sub-type: Office/Residential Year Built: 1948Building: Class C Parking Ratio: 1.61/1,000 SFSale Type: Investment Zoning Description: C1, Palm SpringsLot Size: 0.48 AC APN / Parcel ID: 505-261-006

Downtown

1081 North Palm Canyon

Uptown

PALM SPRINGS

PROPERTY DETAILSPrice: $3,650,000 Property Type: Office

HISTORIC ARCHITECTUREUPTOWN PALM SPRINGS“It’s probably one of the better buildings as far as authentic that is still left,” Cunningham says.

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PALM SPRINGS MODERN HOMES

PALM SPRINGS MODERN HOMES

PALM SPRINGS MODERN HOMES

FIRST FLOOR

SITE /FLOOR PLAN

COLDWELL BANKER

APARTMENT #21 BED/ 1 BA

OFFICE

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OFFICEAPARTMENT #1

3 BED/ 2 BA

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W G A L L E R Y

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• Palm Springs is back... Thecity is welcoming visitors fromall over the world to its newdynamic downtown with cuttingedge hotels, an eclectic food anddrink scene, chic shopping and,new entertainment venues aswell as welcoming public spacesfor gathering, celebrating andrelaxing.

• With the warm days and comfortable nights, thisambiance is seductive. With 360 days of sun-kissedweather and drop-dead gorgeous scenery, Palm Springsis like no place else and a comeback as Hollywood’splayground with a growing nightlife, burgeoning art sceneand edgy vibe.

• It could be the surge of super hip (and becoming superlarge) events like the Palm Springs International FilmFestival, Modernism Week, and Coachella and StagecoachMusic Festivals. Or the openings of incredibly uniquemuseums such as the Architecture and Design Center indowntown Palm Springs.

• Today, there is a thriving gay community and endlessoutdoor activities. Palm Springs is also home to one of thelargest collections of Mid-century Modern architecture inthe world.

• Palm Springs is located approximately 107 mi east of LosAngeles, 123 mi northeast of San Diego, and 268 mi westof Phoenix, Arizona. The population was 44,552 as ofthe 2010 census. Palm Springs covers approximately 94square miles, making it the largest city in the county byland area.

• Palm Springs has more than 350 days of sunshine withless than 5 inches of rain. Winter temperatures average inthe 70’s with nights in the mid-40’s. The dry desert heatof summer pushes daytime temperatures into the 100’s,which is enjoyed by sun seekers from around the globe.

• The geography of Palm Springs is what creates thefamed warm, dry climate. At 487 feet above sea level,Palm Springs is sheltered by the Little San BernardinoMountains to the north, the Santa Rosa Mountains on thesouth, and the San Jacinto Mountains to the west.

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1080 North Palm Canyon

Downtown Palm Springs

Old Las Palmas NeighborhoodTennis Club Neighborhood

UPTOWNDESIGNDISTRICT

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At the corner of Palm Canyon Drive and Via Lola, in Palm Springs’ Uptown Design District, a smart contemporary office building is actually a progressive piece of modern architecture.

Designed more than 70 years ago by the firm of Clark & Frey and built by J.P. Seeburg (of jukebox fame) as a corner drugstore with seasonal apartments above, it is currently prime office space anchored by Coldwell Banker on the ground floor with a unique, private home sprawling over the top.

Anyone who has ever ridden the Palm Springs Aerial Tramway has already seen the ultimate collaboration between Frey and Clark. Frey designed the sleek utilitarian building that straddles Chino Canyon at its base, with its massive triangular windows staring up at Mount San Jacinto. The rustic-modern ski lodge at the top was built by E. Stewart Williams, with Clark as the architect overseeingit all.

Frey is a name you hear often amongst architecture hounds visiting Palm Springs. Clark, not so much. While coffee table books, documentaries, and drive-by tours celebrate the works of Frey, Clark, his contemporary and collaborator, sometimes seems forgotten. But together the two helped build the town of Palm Springs.

The Frey-Clark building was originally the Palm Springs Medical Clinic, fronted by a drug store; upstairs were the Las Palmas Apartments, says the building’s owner, Dennis Cunningham. “It’s probably one of the better buildings as far as authentic that is still left,” Cunningham says. “It just hasn’t gotten much attention.”

When Cunningham, a real estate developer, purchased and renovated the Frey-Clark office building 13 years ago, he noted the neighborhood was not the example of the city’s renaissance that it is now. The neighborhood might have been old but it had great architectural bones. Today, the district is filled with chic boutiques and high-end

BUILDING HISTORY

vintage furniture stores. Style hunters come from all over the world for good shopping and great architecture.

An affable raconteur, Cunningham likes to joke that he moved to Palm Springs from Santa Barbara 30 years ago because he got a flat tire and never left. He and his wife, Cheryl, founded Palm Springs Modern Homes and built the first new multifamily dwellings in town in nearly 30 years, Cunningham says. This helped launch the building boom that continues today. In keeping with the style of his other developments like 48@Baristo, 48@Amado, and 64@TheRiv, he’s renamed his Frey-Clark building “6@Via Lola,” with the company’s art-filled offices at the back of the site.

The offices and home above reflect the couple’s summers spent in Santa Fe “camping” in a pristinely vintage Airstream trailer, now playfully parked out back. The 1974 Airstream “Tradewind” is a nod to the building’s streamline industrial heritage.

The couple’s living room is an open-air patio, complete with fire pit and bocce balls that Cunningham likens to the upper deck at Richard Neutra’s Kaufmann House.

“It’s a gloriette,” he says, referencing the architectural term Neutra used to sneak in a forbidden second story on the home in Vista Las Palmas. The indoor-outdoor space has been the site of many Modernism Week parties in the last few years.

“The elevator to the second floor was put in by the [Desert Regional] hospital, when they had their offices upstairs and the downstairs was where their MRI machine and accounting offices were,” Cunningham says.The Clark-Frey building is an expression of the two architects’ ethos. Made of poured concrete with large corrugated steel overhangs, it is sleek, sturdy, and suited for the desert climate. “This place is solid,” Cunningham says.

Additional Works by Albert Frey

C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M

MICHAEL KASSINGERRealty TrustSenior Vice President760-668-2322michael@michaelkassinger.comBRE 01213797

REPRESENTED BY

Suite Type Of Use Tenant Name Sq Ft Per Month Per SF Per Year Lease Expiration1081 Office Coldwell Banker 3616 6,905$       1.91$          82,860$          7/21/2020

1091A‐1 Office Barker/Pacific 366 900$          2.46$          10,800$          mo to mo

1091A‐2 Office Foley & Stinette 366 700$          1.91$          8,400$            9/30/2019

1091A‐3 Office Foley & Stinette 366 800$          2.19$          9,600$            9/30/2019

1091A‐4 Office Matrix Insurance 364 775$          2.13$          9,300$            mo to mo

1091A‐5 Office West Coast Escrow 366 800$          2.19$          9,600$            2/1/2020

1091A‐6 Office West Coast Escrow 366 800$          2.19$          9,600$            2/2/2020

1091 B Office Ron 1674 350$          0.21$          4,200$            6/30/2021

Office Dennis 350$          4,200$           Office Phylis 650$          7,800$           Office Storage/Closets 500$          6,000$           Office Kitchen 600$          7,200$           Office Cheryl Office 650$          7,800$           Office Dennis Office 1,200$       14,400$         

1089 A Penthouse Dennis Cunningham 1800 2,200$       1.22$          26,400$          6/30/2023

189 B Office Lance O'Donnell 1318 1,450$       1.10$          17,400$          4/30/2020

1089 C Apartment T. Cunningham 800 1,200$       1.50$          14,400$          mo to mo

1089 D Office Troy Zimmerman 1200 1,100$       0.92$          13,200$          12/31/2019

Totals 12602 21,930$     263,160$       

Recapture of CAMS 20,481$         Total Income 283,641$       

Expenses

Signage 50$            Advertising 50$            Cleaning 3,900$      Elevator Maintenance 3,070$      Insurance 6,197$      Landscaping 1,680$      Office supplies 1,130$      Pest Control 504$          Accounting 3,600$      New Property Tax 45,000$    Telephone 650$          Electric 11,566$    Gas    903$          Trash 2,017$      Water 1,525$      Deck Cleaning 3,900$      

Total Expenses 85,742$    

NOI 177,418$  Cam Fees Coldwell Banker 15,180$    

Lance O'Donnell 4,101$      Troy Zimmerman 1,200$      

NOI with CAMS 197,899$  Cap Rate 5.57%

Price Per SF ‐$ 281.70$    

P&L (Proforma) 1081 North Palm Canyon Drive

$3,550,000

Sales Price

Prime Office/Retail/Residential In come Property In Uptown Palm Springs

The information above has been obtained from sources believed to be reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

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Suite Type Of Use Tenant Name Sq Ft Per Month Per SF Per Year Lease Expiration1081 Office Coldwell Banker 3616 6,905$       1.91$         82,860$          7/21/2020

1091A‐1 Office Barker/Pacific 366 900$          2.46$         10,800$          mo to mo

1091A‐2 Office Foley & Stinette 366 700$          1.91$         8,400$            9/30/2019

1091A‐3 Office Foley & Stinette 366 800$          2.19$         9,600$            9/30/2019

1091A‐4 Office Matrix Insurance 364 775$          2.13$         9,300$            mo to mo

1091A‐5 Office West Coast Escrow 366 800$          2.19$         9,600$            2/1/2020

1091A‐6 Office West Coast Escrow 366 800$          2.19$         9,600$            2/2/2020

1091 B Office PS Modern 1674 2,511$       1.50$         30,132$          6/30/2021

1089 A Penthouse Dennis Cunningham 1800 2,200$       1.22$         26,400$          6/30/2023

189 B Office Lance O'Donnell 1318 1,450$       1.10$         17,400$          4/30/2020

1089 C Apartment T. Cunningham 800 1,200$       1.50$         14,400$          mo to mo

1089 D Office Troy Zimmerman 1200 1,100$       0.92$         13,200$          12/31/2019

Totals 12602 20,141$     1.60$         241,692$       

Recapture of CAMS 1,707$       20,481$         Total Income 262,173$       

Expenses

Signage 50$            Advertising 50$            Cleaning 3,900$      Elevator Maintenance 3,070$      Insurance 6,197$      Landscaping 1,680$      Office supplies 1,130$      Pest Control 504$          Accounting 3,600$      New Property Tax 45,000$    Telephone 650$          Electric 11,566$    Gas    903$          Trash 2,017$      Water 1,525$      Deck Cleaning 3,900$      

Total Expenses 85,742$    

NOI 155,950$  Cam Fees Coldwell Banker 15,180$    

Lance O'Donnell 4,101$      Troy Zimmerman 1,200$      

NOI with CAMS 176,431$  Cap Rate 4.97%

Price Per SF ‐$                          281.70$    

P&L (Actual) 1081 North Palm Canyon Drive

$3,550,000

Sales Price

Prime Office/Retail/Residential In come Property In Uptown Palm Springs

The information above has been obtained from sources believed to be reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.