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A V A l u e P r o P o s i t i o n

Buyer’s Guide

Table of Contents

introduction ............................................................................................ the Property........................................................................................... History & Vision.................................................................... Four Cornerstones of Success................................... enduring Value........................................................................................

innovative Design & Quality Construction........................

Amenities................................................................................................... Amenities Map..................................................................... Club Ninety Six..................................................................... Club Ninety Six Catamaran........................................... Club Espiritu........................................................................... Espiritu Park........................................................................... Kids & Teen Programs..................................................... Parks & Open Spaces...................................................... Palmilla Jack Nicklaus Signature Golf..................... One&Only Palmilla Hotel................................................. Palmilla Tennis Club........................................................... services....................................................................................................... Residential & Resort Services..................................... Signature Tours................................................................... Activities & Adventures................................................... Homeowner’s Association............................................ Medical Services................................................................ Del Mar Connect................................................................ Del Mar Escapes................................................................ Private Jet Partnership..................................................... Design Center....................................................................... Warranties & Renovations.............................................. Connections............................................................................................. Management & operations.......................................................... The Developer and Del Mar Owners........................ Senior Management Team............................................. Budgets & Financial Reporting................................... Marketing................................................................................ Allied Businesses............................................................... social Awareness & Community enrichment................ Cabo evolving......................................................................................... A Vision of the Future........................................................................ Press reviews.........................................................................................

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Welcome to the Del Mar Development communities in Los Cabos, Mexico: Villas Del Mar, Espiritu Del Mar and Oasis Palmilla. The purpose of our Buyer’s Guide is to help you make thoughtful, fully informed decisions about the value of our homes, the operation, management, purchasing and ownership experiences, as well as our vision for the future.

Del Mar Development has created Mexico’s premier luxury communities distinguished for their design, quality management, and lifestyle. What began in 1995 as just a few homes built on beachfront property next to the original Palmilla hotel has grown organically with more than 200 homeowners now enjoying the Del Mar and Los Cabos lifestyle.

Mexico is the 9th fastest growing economy in the world at 4% per capita GDP per year. Energy, tourism, manufacturing, healthcare and services have given Mexico a new economic vigor and it is estimated that by 2050 it will be the 7th largest economy in the world. Substantial growth and stable economic conditions have produced a climate that is attractive to high net worth individuals who want to invest and live in Mexico and whose presence will elevate the desirability of communities like Del Mar Development.

Since 1995, Del Mar Development has seen an approximate six-fold increase in property values. Resale prices are consistently among the highest per square foot in Los Cabos. Del Mar Development communities are owned by stable, well-capitalized investors who are experts in destination real estate. The senior management team lives in Los Cabos, overseeing development as well as every detail of luxury amenities and services, which combine the qualities of a five-star resort with the value of homeownership and the warmth of a community.

This Buyer’s Guide will assist you in your research, as you contemplate your purchase decision. We recognize that due diligence is a critical part of the property purchasing process. The economy, your family’s financial interest and the availability of many choices in the destination real estate world require that you take a thoughtful look at the value equation of your investment. The following pages will give you confidence that Del Mar Development has expertly provided the infrastructure, quality of construction and service platform to meet your needs for a property of enduring value.

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On the southern tip of the dramatic Baja California coast, Los Cabos is a 20-mile scenic corridor on the Sea of Cortez, encompassing the destination towns of San Jose del Cabo and Cabo San Lucas. Los Cabos is one of the most affluent areas in Mexico and offers a rare combination of temperate climate, physical beauty and rich cultural history, making it one of the premier resort destinations in the world. Just outside of San Jose del Cabo, Del Mar Development is situated in Palmilla, a unique slice of land that stretches from the pristine beachfront to the desert mountainside and includes the rolling hills of the Palmilla golf course.

When Houston friends and business associates Ron Hatfield and Kenneth Schnitzer vacationed here in 1994, Los Cabos was a still a sleepy fishing community, lacking basic conveniences such as stoplights, grocery stores, and telephone services. However, the 1,000-acre master-planned Palmilla development just outside of San Jose del Cabo already had a full infrastructure in place. Its legendary Palmilla Hotel, built in the 1950’s, was a favorite destination and sport-fishing resort for the Hollywood crowd, and it was home to the first championship golf course in Los Cabos, designed by Jack Nicklaus and built by international developer Don Koll.

Ron and Kenneth saw an opportunity to create something special and purchased their first sliver of land beside the Palmilla Hotel, breaking ground on Cabo’s premier luxury community, Villas Del Mar in 1995. Their vision for Villas Del Mar was comprehensive and focused on building homes that fit buyers’ lifestyles, incorporating privacy, comfort, services and beauty. They began with six homes on the beach and soon realized the potential to build a world-class community. The company they created, Del Mar Development, evolved based on their mantra for innovation, quality in every phase of design and by listening carefully to what homeowners and prospects wanted. It was this mantra that defined Del Mar Development’s Vision and led to the creation of its Four Cornerstones of Success.

Sadly, Kenneth Schnitzer passed away in 1999 and his sons Kenneth Jr. and Douglas continue to nurture his vision while Ron Hatfield is CEO of Del Mar Development and makes Los Cabos his home.

The PropertyHistory & Vision l o s C A b o s At A G l A n C e

• Population: 238,000• Sunshine: 300-350 days per year• Rain: Less than 10 inches per year• Average temperature: 78o F• Peak season: November to May• San Jose del Cabo airport is modern and easily accessible by commercial or private aircraft• Flights arrive daily from most U.S. and Canadian cities. Cabo is a 2½-hour flight from major southern and western airports.

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The Property

innoVAtiVe DesiGnDel Mar Development brings together experts: master planners, design and landscape architects, engineers, interior decorators, lighting designers, color consultants, pool designers, energy-saving experts and more. These specialists collaborate to deliver the physical, social and sensory details of our communities, from road connectivity and amenity placement, to the sights, sounds and scents of our many gardens. Even the intentional curves of our roads are designed to keep vehicle speeds down, while minimizing the need for signage and speed bumps.

QuAlity ConstruCtionEach Del Mar Development home is made by hand. Artisans, who take pride in the quality and individuality of each home, craft every detail and operate under the supervision of Del Mar Development construction personnel. We are known for our timeless architecture and high standards. We use premier building materials and locally sourced labor and materials, where possible. Each home is backed by a one-year developer’s warranty.

WoRLd-CLASS AMeNitieSHomeowners and guests enjoy the finest amenities, including access to two private members-only clubs, the world-renowned One&Only Palmilla Hotel, 27 holes of championship golf, and a variety of recreational activities. (Please see the “Amenities” section of the Buyer’s Guide.)

suPerlAtiVe resiDentiAl & resort serViCesOur belief in exceptional property management is an extension of our conviction that homeownership should be carefree. Our experienced staff takes pride in providing seamless customer service from pre-arrival preparation to post-departure maintenance, and everything in-between. All of the concierge services expected at a five star resort are available to homeowners and guests, including private chef and butler service. (Please see the ““Services” section of this Buyer’s Guide for more details.)

Four Cornerstones of Success

Vision StatementDel Mar Development creates Mexico’s premier luxury communities distinguished for their design, quality construction, amenities, residential & resort services and enduring value.

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Enduring ValueInterest in Los Cabos as a resort home destination has grown consistently over the past two decades, and property values have grown along with it. Del Mar Development properties have demonstrated a solid history of value retention and appreciation.

Since 2005, Del Mar Development has averaged an historical sales pace with increases in the number of homes sold per year rising dramatically. We have seen a consistent trend towards appreciation with prices for resale homes remaining comparable to new home sale prices, demonstrating that Del Mar Development homes hold their value.

Even throughout the recent worldwide economic downturn, Del Mar Development homes have held their value at an average square foot price range of $1000 - $1200 per square foot. We anticipate the values of our homes to continue to increase in the future.

Del Mar Development stands by its ongoing commitment to enhancing its communities, quality construction, the service platform and amenities as well as ongoing international marketing efforts, all of which are outlined further within this guide.

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Del Mar Development integrates the traditional and the innovative in a complementary style that gives families wishing to customize their home an

endless array of choices. Our Design Center staff works closely with our families to design the features that maximize the quality of their life.

Innovative Designand Quality Construction

New Directions in Resort Home DesignAs of September 2013, 209 homes and 28 home sites have been sold in the three Del Mar Development communities. This fully established community of homeowners gives us a focus group of buyers whose feedback and participation in design was integral as we explored new directions in resort home construction. In fact, 35% of the new homes under construction in 2012 and 2013 were for existing homeowners.

Over the years, the Del Mar Development communities have become more of a family destination, attracting families that incorporate three or more generations as well as younger buyers. Their Del Mar Development home becomes a source of joy across generations – for childhood memories, fun family time and friendships with neighbors and their children.

Del Mar Development architecture evolved with each new neighborhood, bringing innovate design features to the residences while maintaining the overall visual integrity of the entire community. The land planners, architects, contractors, construction crews, landscapers and interior designers have been with us for years and remain committed to the founder’s vision while incorporating new elements that stretch design and home technology.

Some of these features include:

• More spacious home designs featuring additional bedrooms and detached guest casitas, larger dining areas, larger closets and multiple cooking areas.

• Outdoor living spaces continue to lead design with shaded pavilions, larger fire-pits, water features and fountains, exterior music and TV locations.

• Pools have a wider range of features for multi-generational enjoyment including children splash zones, shallow ledge for in-pool chaise lounges and areas designed for lap swimming.

• Wine and beverage has moved to the forefront with unique wine cellars for collectors and dedicated bar areas for entertaining.

• Designs are becoming more accessible and interconnected with single level construction, multiple staircases (interior and exterior) and elevators.

• With homeowners spending more time in-residence, home technology and designated offices have become an important part of the design with buyers requiring communication technologies and designated areas for more sophisticated entertainment systems.

• New energy saving features include photo voltaic solar panels designed into the roof-scape and home designs allowing for even more natural light and cross ventilation.

• Lighting has become a major design feature with families adding up-lights, art lights, cove lights and extensive exterior landscape lighting. These features are often controlled by Lutron QS systems so that families can set lighting scenes, utilize automatic motion control lighting and press a convenient “all-off” switch when leaving or sleeping.

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The Del Mar Development communities are known for their world-class amenities which offer homeowners and guests enough activities and adventures to entertain the whole family. They enjoy access to two private clubs, the Club Ninety Six beach club and the Club Espiritu fitness center. In total, there are three fitness centers on site. Other amenities include Tennis Courts, the Jack Nicklaus designed Palmilla Golf Course and the One&Only Palmilla Hotel.

Amenities

Club Ninety Six, private beach blub

Club Ninety Six Catamaran

Club Espiritu, spa & fitness club

Espiritu Park with tennis, basketball & play area

Mirador de la Cruz

Palmilla Bay, safe swimming beach

Fishing Boats available for charter

One&Only Palmilla Hotel, Spa & Restaurants

Amenities Map Walking or Golf Cart Paths

Villas Del Mar Fitness Center

Oasis Palmilla Fitness Center

Palmilla 27 Hole Golf Course

Querencia Golf & Club House

Palmilla Tennis Club

The Shoppes & Restaurants at Palmilla

ABC Hospital

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Club Ninety SixClub Ninety Six is located on Palmilla Bay, the safest swimming beach in Los Cabos, where the waters rarely dip below 72 degrees. Club Ninety Six members enjoy:

• A casual poolside grill and a candlelit terrace for fine dining• Beach deck dining and lounging area• Indoor bar and lounge with flat-screen televisions• The Beach Activities desk offers a schedule of water & beach activities as well as complimentary equipment rental for adults and children including stand-up paddleboards, kayaks, snorkel gear, a Hobie cat, beach sports and much more• Two free-form, ocean-side swimming pools, shallow children’s pool, 22-meter lap pool and heated spa• Oceanside fire pit• Private member parties and holiday events• A climate-controlled member’s wine cellar• In-residence dining delivery• Membership is true value as it is transferable with sale of the home (subject to Club Ninety Six membership bylaws)

Club Ninety Six Sailing Catamaran• 50-foot private catamaran for the use of Club Ninety Six members and guests

• Available for half-day and full-day charters

• Snorkeling and kayak equipment onboard

• Sails right from Palmilla Bay, in front of Club Ninety Six

Amenities

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Club EspirituClub Espiritu is a 10,000 square foot hillside fitness center with panoramic ocean and mountain views, catering both to those who want to exercise and those who wish to relax. Equipped to accommodate everyone from the novice to the professional athlete, the $8 million club features:

• Cardio machines, each equipped with iPod-compatible personal viewing screens• Circuit and functional strength training equipment• Pilates studio, Spinning and group class studio• Outdoor yoga pavilion• Group class schedules and personalized instruction• 25-meter lap pool• Steam and sauna• Spa services including massage, facial, body treatments and salon services, many of which are also available in-residence

Espiritu ParkLocated next to Club Espiritu, Espiritu Park Features:

• Tennis court• Half-basketball court• Children’s playground area• Splash garden with pop-up jets• Sports and event lawn

Amenities

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Kids and Teens ProgramChildren thrive at Del Mar as they can enjoy a wide variety of activities, including swimming, beach sports, arts and crafts and environmental exploration.

Del Mar offers a full kids and teens activities program which includes a daily Complimentary Kid’s Club at Club Ninety Six (November-April) for ages 4-10 years old, sports activities at Espiritu Park, plus golf, Spanish and tennis group lessons.

They can also enjoy endless activities by asking about complimentary sports and rental gear available both at the Club Ninety Six beach activities desk and at Espiritu Park including beach tennis, ping pong, football, soccer and volleyball.

Parks and Open SpacesDel Mar Development communities boast more than 20 acres of open space connected by miles of walking or golf cart paths that climb to nearby peaks and descend to the Sea of Cortez. In the figurative and literal heart of the communities lies the hilltop sanctuary known as the Mirador de la Cruz. It is marked with a cross, erected long ago as a monument to the sea-faring culture of Baja. Today, it is preserved as a green open space for the community to enjoy.

Palmilla Jack Nicklaus Signature Golf Course Palmilla’s 27-hole Jack Nicklaus Signature golf course is available to Del Mar Development homeowners. Many homes and home sites overlook the award-winning layout that combines desert mountain terrain and ocean vistas. Its 27 holes, which feature three championship nines, the Mountain, Arroyo and Ocean, drop 600 ft. in elevation, as terraced fairways wind their way toward the ocean. Honored with the prestigious “Best of Golf” award by LINKS magazine, the course was also named “One of North America’s Best Golf Properties” by Golf Digest. The Palmilla course has hosted the Senior PGA Tour’s Senior Slam.

One&Only Palmilla HotelDel Mar Development residents and guests have access to the neighboring One&Only Palmilla’s fine dining restaurants including Agua and Market, as well as the spa facilities. Homeowners may purchase Social Memberships to the hotel with benefits like preferred restaurant reservations, full spa access and discounts at the boutique, on catered functions and on hotel accommodations.

Palmilla Tennis ClubPalmilla Tennis Club has five state-of-the-art courts: two Har-Tru courts featuring the surface used for most professional clay-court events and three Plexicushion courts featuring rubberized cushioning that provides a joint friendly playing surface. A center exhibition court features grand-stand seating for 220.

Amenities

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Additionally, del Mar Management offers a vast menu of a la carte personal in-home services including:• Airport Transfers, Private Transportation & Chauffeur Services• Grocery Shopping• Butler (full or half-day service)• Chef (Breakfast, Lunch & Dinner)• Housekeeping• Babysitting • Storm preparation & reset (e.g. furniture storage, storm shutter install & removal)• Maintaining local vehicles• Event coordination: Beach BBQ and Bonfire, In Residence Dinner or Cocktail party • Activities Coordination

Signature ToursDel Mar Management has created Signature Tours so that homeowners and their guests may experience the very best of Mexico and some of Los Cabos’ most unique destinations. The Del Mar team manages every detail of the personalized travel arrangements from transportation to accommodations.

discover Mexico Signature tour destinations include: • Mexico City • Guadalajara • Copper Canyon • Valle de Guadalupe wine regiondiscover Los Cabos Signature tours include: • Luxury Camping Trip to the Sierra La Laguna Mountains • Horseback Punta Gorda on the Picturesque East Cape • Set out for a true Fisherman’s Adventure with the best local anglers

Residential and Resort Services Our property management philosphy focuses on being onsite and available to homeowners at all times. During peak season, November through May, the property comfortably accommodates as many as 1,000 residents and guests daily. Del Mar’s residential management company, Del Mar Management, is developer-owned and operated and works together with the Homeowner’s Association to provide excellence in service. Each homeowner is assigned a Guest Services Manager, a single-point of contact for personalized service for any need, from paying personal bills and managing local bank accounts to pre-arrival home preparations. This Guest Services Manager oversees the care and maintenance of the home.

Services

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Activities and AdventuresDel Mar’s concierge team can also arrange the finest local activities and adventures with private guides who can take you to the favorite local spots, hidden gems off the beaten path and the popular tourist destinations. Each activity can be completely customized and the full menu includes, but is not limited to: • Whale watching • Deep sea fishing • Swimming with the dolphins • ATV tours • Outback and Camel Safari • Canyon hikes • Surf trips and lessons • Turtle releases (seasonal) • Kayak and snorkel tours • Art walks

Services

Homeowner’s AssociationThe Homeowner’s Association (HOA) is responsible for all common areas within the development and the managing of the yearly HOA budget. The HOA Administrator represents the HO associations at the Palmilla Master Association and Espiritu Del Mar Master Association.

Many expenses, typically the responsibility of the individual homeowner in other communities, are included in the services provided by our HOA. HOA fees include the following:

• HOA Management personnel available onsite

• 24-hour security, including personnel at key access points, roaming security guards with first aid training and a central security office with on-site security cameras monitored 24/7/365

• A chief medical officer on call providing medical assistance, including 24-hour bilingual emergency response/support, as required

• Water services for each residence, provided by the City of Los Cabos. Water is then further treated and purified by Del Mar Development

• Hurricane and storm protection of common areas

• Electricity for common areas (streets, landscape lighting, entrance gate, etc.) provided by CFE

• Building and common area insurance, provided by Lloyd’s of London

• Basic landscaping in each residence

• Pool cleaning (Villas Del Mar residents only)

• Common area landscaping and fumigation

• Beach maintenance and cleaning

• Trash collection, recycling and street cleaning

• Owner replacement reserve fund per HOA phase

• Membership in the Master Association of the Palmilla Development (Villas Del Mar only), which maintains the entrance, main road arteries and beaches of Palmilla. Unlike many developments in Los Cabos, the Palmilla Master Association has a monetary reserve for emergencies and future improvements.

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Del Mar ConnectIn response to homeowner requests, Del Mar Development invested over $3 million in the creation of Del Mar Connect, the first fiber optic home system in all of Latin America. Del Mar Connect:

• Offers Cable TV with U.S. channels and PVR capabilities, high-speed internet and VoIP• Maintains its own bank of telephone lines to deliver immediate service to homeowners • Maintains a staff of IT specialists to ensure network performance and upkeep

Medical ServicesFor 15 years, the Homeowner’s Association has had a bilingual Chief Medical Officer, Dr. José Fidel Cerda Anzaldo, under contract to provide medical and emergency response services to homeowners and guests as well as to train Del Mar staff in CPR and lifesaving techniques. He received his medical degree of surgery in 1990 from the Universidad Autónoma de Guadalajara of the Universidad Nacional Autónoma de México. Furthermore, he is a Fellow of Medical Biochemical, Metabolics and Nutrition with a master’s degree from the Medical University South Florida, USA, and a Fellow and Member of the American Academy of Anti-Aging Medicine.

Dr. Cerda established and sponsored the first Medical Surgical Emergencies equipped facility in Los Cabos for the American community. He is an active member of the Medical and Trauma Surgeon Mexican Association, Medical Emergencies Mexican Association and Pediatric Medical Emergencies Association. He attends yearly conferences for the Medical Emergencies updates and has been certified on Advanced Life Support, Advanced Trauma Life Support and Pediatric Advanced Life Support.

Services

Del Mar EscapesDel Mar Development off ers the private villa vacation program, Del Mar Escapes, which provides homeowners with an opportunity to realize an additional return on their investment and off ers guests a chance to experience Del Mar before deciding to purchase a home. Many Del Mar Development homeowners came through the program after experiencing the services and amenities off ered on-site. Homeowners benefit from the security of knowing that Del Mar Management staff is managing every detail of a guest’s stay, protecting the homeowner’s investment and providing Del Mar quality service for guests.

Here are a few of the services and amenities Del Mar Escapes guests enjoy:

• Access to Club Ninety Six, Club Espiritu and the One&Only Palmilla Hotel• Private chef and butler services • Daily housekeeping • Private golf cart • Private round-trip airport transfers• A variety of pre-arrival services, including provisioning the residence prior to guest arrival

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Services

Design CenterDel Mar Development has a full-service onsite Design Center with three Interior Designers who can assist the buyer with an original design or work with the buyer’s interior interior designer for total design integration. Homeowners and buyers may also browse custom materials at the Design Center such as tile choices, fixtures and finishes.

Warranties and RenovationsEach new Del Mar Development home comes with a one-year developer’s warranty. The Del Mar Warranties department is managed by internal staff that embraces Del Mar Development’s service commitment, as well as its high quality standard. The Warranties team works closely with the Guest Services Managers and the Homeowner’s Association to ensure homeowners expectations are met and exceeded.

Del Mar Renovations provides personalized remodeling services for our homeowners. It coordinates with a team of qualified contractors who can assist with any project from adding an additional bedroom to relocating electrical outlets. Leveraging on Del Mar Development’s buying power, Renovations negotiates with contractors and vendors to provide our homeowners with preferred rates and competitive pricing.

Just as Del Mar Development offers a one-year warranty on new construction, Del Mar Renovations offers a one year warranty on all projects. The following services are provided:

• Meet with the homeowner personally to evaluate the request and vision• Space planning and design services• Provide conceptual drawings for approval • For exterior projects requiring HOA approval, the first round of drawings are complimentary and prepared for submittal• Complete construction documents and cost proposals• Cost control• Coordinate all activities with qualified and experienced contractors and subcontractors in an efficient manner to complete work properly and on time• Supervise all aspects of the work within the residence, including protecting interior furnishings and managing contractor personnel • Work around the homeowners’ schedules while respecting their privacy

Private Jet PartnershipIn 2012, Del Mar Development announced a partnership with Delta Private Jets to offer homeowners and guests the best in private aviation. This strategic alliance speaks to the prestige of the Del Mar Development communities and the strength of our reputation worldwide.

Homeowners enjoy the following exclusive benefits:• 5% discount on Delta Private Jets charter services

• Purchase a Delta Private Jets Card or Fractional Jet Card and receive a $5,000 gift certificate for Del Mar butler and chef services, spa services, catamaran excursions, etc. (Excludes Club dues and HOA or Del Mar Management fees)

• Use Delta Private Jets to travel to Los Cabos and receive a complimentary customer experience valued at $700 (spa treatments, charters, excursions, etc.)

• A $30,000 Delta Private Jets Gift Certificate is one of the rewards available in the Del Mar Homeowner Referral program

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ConnectionsCommunicationsThere are multiple avenues for homeowners and Del Mar Development management and staff to connect and communicate.

• Del Mar Development co-founder Ron Hatfield and his senior executive staff manage day-to-day operations and are readily accessible onsite for homeowners.

• The Guest Services Manager is a single point-of-contact for personalized service

• The Homeowner’s Association is onsite to listen to homeowners’ ideas and concerns

• A secure and private homeowner and member website with all community news, club information, event schedules, HOA documents, a message board and a homeowner directory.

• In-season Del Mar Development e-newsletter “News from Del Mar Development” features community events, a letter from the developer, new amenities, real estate for sale, construction updates, etc.

• Regular e-newsletters (weekly in season): “News from Club Ninety Six and Club Espiritu” keeps guests informed about club events and offerings.

• In-residence marketing: homeowners, guests and visitors to Del Mar Development properties can tune into Del Mar’s channel on their in-residence televisions to learn more about the community, our history, services and amenities.

Calendar of Events

Del Mar Development creates an in-season event calendar that brings homeowners together and fosters a sense of community. These events are so popular that many homeowners make their travel plans around the event schedule. Sent electronically, posted to the homeowner website and posted on-property, the calendar of events provides homeowners with activities designed to enhance their vacation experience and for them to get to know their neighbors.

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The Developers and Del Mar OwnersDel Mar Development’s communities are owned by three well capitalized, highly experienced investors. This ensures the communities’ long-term viability and strength.

ron HAtFielD is co-founder and President of Del Mar Development and responsible for all of its development and investment activities in Mexico. He has more than 40 years of experience in real estate development, including multi-family, commercial and residential projects. Before moving to Los Cabos, Ron was involved in the development of several multi-family and commercial developments in his hometown of Houston, Texas, including Cypress Station, Northwest Crossing, Town and Country Shopping Center and Champions Villages. Mr. Hatfield is a graduate of Rice University, in Houston, with a Bachelor of Business Administration and is a Certified Public Accountant. He resides in Los Cabos year-round.

tHe sCHnitzer FAMily has carried on the original vision of Kenneth Schnitzer since his passing. Today, this effort is led by Douglas Schnitzer, co-founder of Del Mar Development and President and Chief Executive Officer of Senterra Corporation. Douglas and his brother Kenneth own numerous operating entities primarily involved in real estate and the luxury automobile business. Since 1985, Douglas has served on the Board of Trust Managers for Weingarten Realty Investors. A native Houstonian, he graduated in 1978 from the University of Arizona with a Bachelor of Business Administration Degree.

MsD CAPitAl was established in 1998 to manage the capital of Dell Computer founder Michael S. Dell and his family. With a staff of over 80 people and offices in New York, Los Angeles and London, MSD Capital has investments in a wide variety of public and private companies that reportedly total more than $10 billion. Among MSD’s extensive real estate holdings are luxury hotels, including the award-winning Four Seasons Resorts in Wailea and Kona, Hawaii. In addition to capital resources, MSD brings a depth of market insight and management experience to the Del Mar Development communities.

Management & Operations

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JohN CAStiñeiRAS is Vice President of Operations for Del Mar Management. John has over 28 years of experience in the service industry, 20 of which have been in owning and operating his own business or in business management. He joined the Del Mar Management team in 2005 and has lived in Los Cabos with his family since 2000.

bryAn PACHolski is the Director of Sales for Del Mar Development. Prior to joining Del Mar Development Bryan served as Military Police Officer in the United States Army. After moving to Los Cabos in 2005, he sold $65 million in residential real estate for Snell Real Estate. Since joining Del Mar Development as Director of Sales in 2011, Bryan has negotiated more than $100 million in residential real estate sales. He manages the developer’s portfolio of active real estate listings and the executive sales team as well as provides strategic sales and marketing planning. Bryan lives in Los Cabos with his family.

DAViD bruCe is Vice President of Development and Operations for Del Mar Development, managing the operations of Del Mar Development, its affiliates and current development projects. Previously David was a senior vice president at Senterra Corporation, an affiliate of Del Mar Development. In that capacity, he managed the acquisitions, divestitures and financing transactions for Senterra and its affiliates. David holds a B.A. in Business Administration from the University of Arkansas.

RobeRt JoNeS is Vice President of Construction for Del Mar Development. Robert joined Kenneth Schnitzer and Ron Hatfield in 1997 to assist in the development of Villas Del Mar, and since then, has been directly involved in the design and construction of all the Del Mar Development projects. Under his direction, quality design and craftsmanship have become the hallmarks of Del Mar Development. As he puts it: “Our mission is to create communities that embody quality and celebrate the joy of living.” Robert is a registered architect and interior designer. His previous work included coastal real estate development on Padre Island, Texas, designing over $100 million worth of high-end beachfront condominiums. Robert, who resides in Los Cabos with his family, is a graduate of the University of Texas and holds a Bachelor’s degree in Architecture.

lionel AlVArez is Managing Director of Resort Services, overseeing the management of resort homes as well as the Del Mar Escapes vacation program. Lionel has 30 years of experience in the luxury resort industry including his time as the former managing director of the Hotel Las Ventanas al Paraiso in Los Cabos. He has managed four and five-star resorts around the world including Portugal, Spain, Mauritius, France and Bora Bora.

Senior Management Team

Management & Operations

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Development Budgets & Financial ReportingDevelopment budgets are prepared each financial year with respect to real estate sales, construction costs and soft costs for projects. Each operational company also sets a yearly budget of streams of revenues and expenses. Financial reports are produced monthly and reviewed by ownership and executive management. Del Mar Development has instituted meticulous controls to ensure that weekly expenditures are correctly accounted for and authorized. All Del Mar Development activities are audited by U.S. accredited accounting firms in both the United States and Mexico.

MarketingDel Mar Development manages its marketing efforts directly, regularly monitoring the market and making appropriate adjustments to our marketing strategy. Among the goals of our continuing marketing and advertising efforts is to increase our brand recognition as “the best-of-the-best” in luxury real estate. After years of leveraging print media buys with editorial coverage, the Villas Del Mar brand evolved from a locally known Los Cabos brand to a world-renowned, elite travel destination.

Del Mar Development has published several editions of its own “Del Mar Escapes” magazine, working with a custom publisher on the 88-page piece that promotes Del Mar’s real estate and resort program, as well as Los Cabos as a destination. The magazine is used as a direct mail piece to our database of potential customers, placed in our villas and published online and in the iTunes app store.

Del Mar Development invests in community and strategic alliances, such as our partnership with Delta Private Jets, as part of our worldwide marketing effort to promote our communities and Los Cabos.

We are committed to being among the world’s best communities and utilize advertising and public relations to position ourselves as such. (Please see “Press Reviews” at the end of this document for examples of Del Mar Development’s media coverage.)

Management & Operations

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Allied BusinessesWe believe in building long-term relationships and have assembled a team of experts. Our allied businesses include:

ARChiteCtS: Our architectural team, headed by Robert Jones (please see bio under “Management Team”), has worked with a variety of internationally known firms and architects including local firm G.V. Arquitectos, Newport Beach architect Arthur Valdez and the late renowned U.S. architect Barry Berkus.

LANd PLANNiNg & LANdSCAPe deSigN: Denver, Colorado landscape design and planning firm Vogel & Associates has been a design consultant with Del Mar Development for more than a decade. Vogel & Associates advises on land planning, product time, densities and segmentation. They also provide both pool and landscape design services.

geNeRAL CoNtRACtoR: Founded in 1989, local firm Gravi Constructora has grown with Del Mar Development communities. CEO Luis Cano Hernandez helped build the very first homes at Villas Del Mar. Today, his company boasts more than 140 full-time employees and expands to literally thousands of staff during peak building periods.

deSigN CeNteR: Del Mar Development has a full-service onsite Design Center with three Interior Designers who can assist the buyer with an original design or work with the buyer’s interior designer for total design integration. Homeowners and buyers may also browse custom materials at the Design Center such as tile choices, fixtures and finishes.

iNteRioR deSigNeRS: Del Mar Development’s years of experience has connected us with several interior design firms that offer homeowners turnkey services including the Ladco Resort Design Group of Houston, Texas. With an extensive portfolio, Ladco has established its reputation as interior designers for luxury resort homeowners. Ladco has an 80,000 square foot furniture design center in Washington Park and also purchases art and custom items throughout Mexico and around the world.

Management & Operations

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Del Mar Development takes pride in being an active member of the larger Los Cabos community and remaining deeply involved in local philanthropic activities. Del Mar Development was a sponsor of the 2013 Ironman Los Cabos, which was the first major sporting event of its kind in the area. Del Mar in partnership with the Palmilla Master Association, opened its communities and beachfront for the swim and bike portion of the race. Del Mar, also sponsored one of its Club Espiritu fitness trainers in the competition who competed in the Women’s 50-55 category.

In 2009, Del Mar hosted the Del Mar Development Champions Cup Tennis Tournament, attended by some of the biggest names in tennis including Pete Sampras, Patrick Rafter and Jim Courier. The tournament benefited the Los Cabos Children’s Foundation, which Del Mar Development has sponsored from its inception, having raised millions of dollars for the charity, which provides medical, educational and humanitarian aid to Los Cabos’ children and families in need. The charity also sends local doctors for U.S. training on treating young cancer patients and sends needy children to the U.S. for medical treatment.

Del Mar Development has generated thousands of jobs and millions of dollars for the local community. Del Mar strives to make employees feel like family, providing an employee cafeteria, transportation, holiday parties, an End-of-Season celebration, a Mother’s Day breakfast, a Father’s Day party and an annual children’s party. We also offer awards for Employee of the Month, Employee of the Year and created an Employee Seniority and Fidelity program that rewarded job loyalty, as many of the Del Mar staff have been here since the beginning.

Del Mar Development also goes to great lengths to protect its natural surroundings making environmental stewardship a priority. Del Mar Development is an active member of the Los Cabos Turtle Protection Network and takes many measures to protect the three species of sea turtles known to nest on its shores. Six Del Mar Development staff members are certified turtle care experts who comb the beaches during nesting season to register and fence off nests which are not visible and buried 18 inches below the surface. The nests can then safely incubate until hatching time, which takes place at night with hatchlings climbing up to the surface together and heading to sea. Amazingly, female turtles that survive will return to their original birthplace eight to 30 years later to lay their own eggs.

Social Awareness and Community Enrichment

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AbC hospitals: ABC Hospital in Mexico City has earned one of the top classifications of hospitals worldwide, and is building a new location in Los Cabos set to open Spring 2014. Located just outside of Palmilla in the mixed use “Koral Center”, the 7,200 m2 hospital will bring many advanced medical services to the resort location:• 36 hospitalization beds • 4 intensive care beds • 4 operating rooms • Emergency room • Neonatal intensive care and cribs • Radiology department • Laboratory • 30 medical offices • Outpatient clinic.

Airport Upgrades: The Los Cabos International Airport, which serves close to 2.5 million visitors per year, has undergone a major expansion with the addition of Terminal 3, attached to Terminal 2, serving international flights. The new terminal features 360,000 square feet of space, modernistic telescopic hallways, 10 departure gates and a host of new retail shops and restaurants. The project is the culmination of a five-year improvement plan for the airport that also included an improved FBO for private aircraft, and Del Mar homeowners and guests are privy to a new and improved VIP Club Lounge in the new terminal, where snacks and beverages are available in a quiet, private setting.

Convention Center: In June of 2012, world leaders gathered in Los Cabos for the G20 summit, the most important multilateral meeting Mexico has ever hosted. The summit took place at the new Los Cabos Convention Center, which was built in record time and inaugurated by then President Felipe Calderón Hinjosa days before the G20 participants arrived. With 72,000 square feet of function space that can comfortably accommodate up to 5,000 people, it is expected that the Los Cabos Convention Center will attract large-scale meetings to the area, and contribute substantially to the region’s already robust tourism and commercial trade. Anchored by three exhibition areas and seven exhibit halls, a business center and lush outdoor gardens, the center was conceived and built as a sustainable facility, incorporating 1,008 solar panels on the roof and the largest “green wall” in the world, which serves as an insulator and prevents the building from overheating in the summer.

Cabo EvolvingThe transformation of Los Cabos over the past two decades into an international destination has become quite apparent with recent infrastructure upgrades and modernization projects including the following:

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A Vision of the Future As we look to the future, we expect Mexico to continue its global economic rise, with substantial growth and stable economic conditions, and for Los Cabos to remain a top destination for successful individuals seeking an exceptional lifestyle and lasting value. These individuals, like Del Mar Development buyers, want to add high value real estate properties to their investment portfolios.

Del Mar will continue to offer a home-away-from-home experience complete with all the privacy, security, conveniences and comforts of our owners’ primary residences. Many view their vacation home as a place to gather friends and families to relax and celebrate special occasions. They are socially active and express interest in being part of communities with others who have achieved similar success. Del Mar Development communities have been designed to meet their needs.

We are excited about further helping to facilitate a strong sense of community in Villas Del Mar, Espiritu Del Mar and Oasis Palmilla – as well as the emergence of new enclaves including the mountaintop homes of the La Montana neighborhood of Villas Del Mar and the Estates neighborhood of Espiritu Del Mar. We are also expanding our leadership in the area of environmental stewardship by implementing a greater use of solar power, sourcing local building materials and preserving open green spaces.

Del Mar Development communities have grown organically as we have relied on the feedback of homeowners, the needs and wishes of potential buyers and the evolving world markets in creating new product. In that sense, the future holds more of the same: an eye on the horizon, a great product, secure financing, a wonderful resident community and a team committed to our principles of community, uncompromising excellence and continuous improvement. That, we believe, is the Del Mar Difference.

We hope you will be a part of making that difference, as we build into the future.

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elite traveler Hotels/resorts/spa Directory Summer 2013

“Villas Del Mar at Palmilla features a stunning collection of beachfront and ocean-view villas, offering a resort experience unlike anything else in Los Cabos.”

Westlake Malibu MagazineMarch 2013

“Each vacation at Del Mar is completely carefree, with every detail meticulously planned and customized by the concierge team. The concierge will pre-book any activities like spa treatments, golf, snorkeling or stand-up paddle boarding.”

Cabo Living: Ron hatfield in his own WordsApril 2012

“It’s a mindset to start with. We have been blessed with a great staff who cares about quality and a very high level service. We are selling an experience.”

robb report exceptional PropertiesMarch 2012

“When it comes to designing Mexican coastal homes, Robert Jones believes that the land itself is most critical when determining the look and feel of a home. … That strategy opened up the possibilities to create dramatic homes with even more dramatic views. ”

upscale livingMarch 2012

“Constructed of the finest materials and sited for both privacy and direct ocean views, Villas Del Mar homes feature innovative planning and design elements.”

Artful livingFebruary 2012

“Last year, we opted for the high end of the spectrum; we decided to go for the gold and stay in a villa at the ultra-exclusive Villas Del Mar at Palmilla. Villas Del Mar offers the comforts of an über-luxury vacation home along with the services and amenities of a five-star resort.”

Del Mar Development has received extensive media coverage. Below is a small sampling of the press we have received in recent years. For more information, please visit the press section of our website.

Press Reviews

Carretera Transpeninsular Km 27.5 PalmillaSan Jose del Cabo, B.C.S., Mexico 23400

011 52 (624) 144-5291

Real Estate and Sales Information1-877-847-1662 or while in Los Cabos 144-5470

Exclusive Vacation Villa Program1-866-845-5277

www.delmarloscabos.com

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