PUBLICATIONS
'THE PLAYER' HIDEAWAY TWO
BUNCH PALMS RESORT SOLD
TO HOLLYWOOD PRODUCERS
February, 2012
Raines Feldman, The Hollywood
Reporter
The Desert Hot Springs property, said
to have been gangster Al Capone's
West Coast hideout, changed hands for
less than $10 million.
Two Bunch Palms Resort & Spa, the
Desert Hot Springs property that had a
cameo in Robert Altman's 1992 film The
Player, has been sold to Hollywood
buyers.
Along with real estate investor Gidi
Cohen, the 270-acre property was
acquired by producers Steve Markoff
and Donald Kushner and entrepreneur
Elie Samaha - the trio who bought
Grauman's Chinese Theatre last year.
According to Coachella Valley real
estate sources, the buyers paid less
than $10 million for the property, which
is said to have been built in the 1920s
by Al Capone and served as his West
Coast hideout.
PHOTOS: Hollywood's Biggest Real
Estate Deals of the Week: Sharon and
Ozzy Osbourne, Vincent Gallo
The group acquired Two Bunch on Feb.
17 from several banks that had
foreclosed on it (the property remained
open during the foreclosure process,
which was completed in 2010). The
prior owner had planned to turn Two
Bunch into a residential subdivision
before the recession dashed those
9720 Wilshire Boulevard, Fifth Floor
Beverly Hills, California 90212
plans. The property is about 10 miles
from Palm Springs.
Two Bunch, with 52 bungalows, is
known for the naturally flowing mineral
waters that fill its pools. It is one of
several resorts and spas to take
advantage of the area's natural hot
springs. Planned upgrades to the
property include enhanced spa facilities
and a facelift for the property's
restaurant. "We want to bring it to the
days when you saw it in The Player,"
says Cohen. Renovations are slated to
be completed by the end of the year.
"The property is really tired and
outdated and we need to bring it to
today's standards."
The new owners' potential long-term
plans for the property at 67425 Two
Bunch Palms Trail include construction
of additional pools and launching a line
of Two Bunch spa products.
Kushner, whose credits include Tron:
Legacy and Monster, and Samaha, a
controversial
nightclub
operator-turned-film producer, acquired
Grauman's from a joint venture of
Warner Bros. and Viacom Inc. for an
undisclosed price in May. (Markoff,
co-chairman of film finance and
acquisition firm A-Mark Entertainment,
was one of several minority buyers in
the group that bought the famed
Hollywood Boulevard movie house.)
PHOTOS: Hollywood's Biggest Real
Estate Deals of the Week: Penelope
Cruz, Gordon Ramsay, Sofia Coppola
Telephone: (310) 440-4100
Toll Free: (877) 239-9227
Samaha has a checkered history in the
entertainment business. Though he has
produced films such asHeist, The Whole
Nine Yards and The In-Laws, Samaha is
also known for his high-profile legal
battle
with
German
company
Intertainment over allegations that he
committed fraud by distorting the
budgets of films made by his Franchise
Pictures. Intertainment accused Samaha
of defrauding it out of $75 million,
arguing that he kept multiple sets of
books for his films. The years-long case
was settled in 2006, with Samaha
paying $3 million to Intertainment.
The Grauman's owners have plans to
refurbish the interior of the 1,200-seat
theater, fix aging infrastructure and add
dramatic outdoor lighting.
According to Desert Hot Springs lore,
Two Bunch was outfitted by Capone
with a sentry tower for armed
bodyguards and featured undeground
escape tunnels. Capone's alleged
bungalow features what are said to be
bullet holes.
Cohen says he isn't sure whether the
stories are apocryphal, but adds that
they are "classic Hollywood."
Andrew Kirsh of law firm Raines
Feldman LLP, who represented the
buyers in the Two Bunch sale, said that
the deal is indicative of increased
interest in the Coachella Valley
hospitality market. "As we have headed
into 2012 there is a lot of deal velocity,
and this deal illustrates investors'
appetite to take on new opportunities
Fax: (310) 691-1367
Email: [email protected]
PUBLICATIONS
'THE PLAYER' HIDEAWAY TWO BUNCH PALMS RESORT
SOLD TO HOLLYWOOD PRODUCERS (continued)
and risk as they see a turn in the real
estate market," he says The sellers
represented themselves in-house in the
transaction.
9720 Wilshire Boulevard, Fifth Floor
Beverly Hills, California 90212
Telephone: (310) 440-4100
Toll Free: (877) 239-9227
Fax: (310) 691-1367
Email: [email protected]
'The Player' Hideaway Two Bunch Palms Resort
Sold to Hollywood Producers (Exclusive)
The Desert Hot Springs property, said to have been gangster Al Capone's
West Coast hideout, changed hands for less than $10 million.
Two Bunch Palms Resort & Spa, the Desert Hot Springs property that had a cameo in Robert
Altman’s 1992 film The Player, has been sold to Hollywood buyers.
Along with real estate investor Gidi Cohen, the 270-acre property was acquired by producers Steve
Markoff and Donald Kushner and entrepreneur Elie Samaha — the trio who bought Grauman’s
Chinese Theatre last year.
According to Coachella Valley real estate sources, the buyers paid less than $10 million for the
property, which is said to have been built in the 1920s by Al Capone and served as his West Coast
hideout.
PHOTOS: Hollywood's Biggest Real Estate Deals of the Week: Sharon and Ozzy
Osbourne, Vincent Gallo
The group acquired Two Bunch on Feb. 17 from several banks that had foreclosed on it (the property
remained open during the foreclosure process, which was completed in 2010). The prior owner had
planned to turn Two Bunch into a residential subdivision before the recession dashed those plans.
The property is about 10 miles from Palm Springs.
Two Bunch, with 52 bungalows, is known for the naturally flowing mineral waters that fill its pools.
It is one of several resorts and spas to take advantage of the area's natural hot springs. Planned
upgrades to the property include enhanced spa facilities and a facelift for the property's restaurant.
“We want to bring it to the days when you saw it in The Player,” says Cohen. Renovations are slated
to be completed by the end of the year. “The property is really tired and outdated and we need to
bring it to today’s standards.”
The new owners' potential long-term plans for the property at 67425 Two Bunch Palms Trail include
construction of additional pools and launching a line of Two Bunch spa products.
Kushner, whose credits include Tron: Legacy and Monster, and Samaha, a controversial nightclub
operator-turned-film producer, acquired Grauman's from a joint venture of Warner Bros. and
Viacom Inc. for an undisclosed price in May. (Markoff, co-chairman of film finance and acquisition
firm A-Mark Entertainment, was one of several minority buyers in the group that bought the famed
Hollywood Boulevard movie house.)
PHOTOS: Hollywood's Biggest Real Estate Deals of the Week: Penelope Cruz, Gordon
Ramsay, Sofia Coppola
Samaha has a checkered history in the entertainment business. Though he has produced films such
asHeist, The Whole Nine Yards and The In-Laws, Samaha is also known for his high-profile legal
battle with German company Intertainment over allegations that he committed fraud by distorting
the budgets of films made by his Franchise Pictures. Intertainment accused Samaha of defrauding it
out of $75 million, arguing that he kept multiple sets of books for his films. The years-long case was
settled in 2006, with Samaha paying $3 million to Intertainment.
The Grauman's owners have plans to refurbish the interior of the 1,200-seat theater, fix aging
infrastructure and add dramatic outdoor lighting.
According to Desert Hot Springs lore, Two Bunch was outfitted by Capone with a sentry tower for
armed bodyguards and featured undeground escape tunnels. Capone's alleged bungalow features
what are said to be bullet holes.
Cohen says he isn't sure whether the stories are apocryphal, but adds that they are "classic
Hollywood."
Andrew Kirsh of law firm Raines Feldman LLP, who represented the buyers in the Two Bunch
sale, said that the deal is indicative of increased interest in the Coachella Valley hospitality market.
"As we have headed into 2012 there is a lot of deal velocity, and this deal illustrates investors'
appetite to take on new opportunities and risk as they see a turn in the real estate market," he says
The sellers represented themselves in-house in the transaction.