Market Analysis 2022 - 13

POTENTIAL IMPACT OF CRYSTAL LAGOON
DATA COLLECTED BY RCLCO SUGGESTS THAT DEVELOPMENTS IN THE US FEATURING CRYSTAL LAGOONS SHOULD EXPECT
TO SEE ENHANCED PERFORMANCE, BOTH IN TERMS OF PRICING (15%-25% PREMIUM) AND ABSORPTION COMPARED TO
COMPARABLE DEVELOPMENTS WITHOUT CRYSTAL LAGOONS.
► Developers have confirmed these premiums, and noted direct carryover to lot
prices, lot sales velocity, and interest from the retail sector.
► Communities with Crystal Lagoons in the US have garnered substantial press
coverage, which has helped boost sales velocity at the first few communities.
This boost should be expected to decline as Crystal Lagoons become more
common in the US and in individual markets, thus generating less press
coverage as a result.
► Crystal Lagoons has signed 30 contracts for projects in the US. The Crystal
Lagoons website shows 138 Lagoons planned in the US, including 12 in CA.
► Completed international Crystal Lagoon communities have seen price premiums
comparable to waterfront premiums, even among homes without direct Lagoon
access, and have demonstrated the potential for Crystal Lagoons to function as
focal points for visitors, drawing vacationers to areas they otherwise would not
visit.
► Based on a synthesis of the considerations noted above, as well as the
particular characteristics of both the subject site and the Greater Palm Springs
Area market, the proposed Crystal Lagoon at Cotino™, a Storyliving by
Disney™ community, is assumed to provide a pricing premium of 10% on
average compared to the actively selling traditional communities in the Greater
Palm Springs Area (i.e., non-branded communities with limited amenities).
» The typical pricing premium of 15%-25% achieved at actively-selling
projects with Crystal Lagoons are priced well below the projected starting
prices for the Cotino™ community. As such, we have conservatively
assumed a 10% premium given the higher starting prices and absolute
dollar value impact on pricing.
DPEP | Cotino™, a Storyliving by Disney™ Community | Rancho Mirage, California
Rendering of Crystal Lagoon for Cotino™, a Storyliving by Disney™
Community
Source: Crystal Lagoons; Section 31 Specific Plan; RCLCO
R1-12149.06 | March 25, 2022 | 13
Market Analysis 2022

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