Marketing Plan

The marketing plan has been tailored to establish Parayso as the standard for private luxury communities focusing on: 1. Luxury real estate market positioning 2. Unique property characteristics 3. Sater Design Custom Collections Homes 4. A Private community with resort-type amenities 5. Leading-edge green technologies

Luxury Real Estate Market Positioning

Unique beachfront properties, large estate sized lots and captivating homes will require the talents of the very finest and most established real estate promoters and brokers. Luxury Real Estate.com is the online marketplace leader In Luxury Real Estate. Access to the world’s largest database of for-sale luxury properties from around the world provides a significant advantage over industry competition. The group consists of more than 1,900 brokers and hundreds of firms. 120,000 individuals in more than 65 countries, collectively sell in excess of $180,000,000,000 of real estate annually, with an average sale price of $2,650,000. Affiliates sell homes for record prices and handle transactions of heightened complexity with complete discretion. Several times a year the group gathers throughout the world to discuss the latest trends in the industry. These “brainstorming sessions” result in innovative and effective marketing strategies for the properties they represent.

The panel of Luxury Real Estate members has been diligently selected by CEO John Brian Losh, (an entrepreneur and broker of high-end properties and estates through the Seattle-based brokerage firm, Ewing & Clark, Inc.). John has been selected as one of Realtor Magazine’s 25 Most Influential People in Real Estate. Eligibility for this accolade requires a firm/broker to list and sell in the top 10 percent of their market and demonstrate expertise in the marketing and sale of multi-million dollar properties. With the guidance of the Board of Regents (Regents.com) and the governing body of Luxury Real Estate, this network represents the best in the industry.

Luxury Real Estate.com has been voted “Best of the Web” by Forbes magazine multiple times, praised by the International Herald Tribune, Town & Country, and the Wall Street Journal and has been ranked “Best Website” according to consumers (based on surveys by Luxury Institute LLC). No other website provides access to such a large amount of detailed content in the luxury real estate niche. Since its debut in 1995, LuxuryRealEstate.com has remained the #1 online resource for luxury properties by consistently driving more traffic to its affiliated websites and generating more qualified inquiries than any other website. This strong international presence, coupled with a focused on-site sales and marketing force will attract worldwide clientele while providing localized service and expertise related to Mexican real estate transactions.

The ability to construct a strong marketing plan as well as generate anticipatory buzz by utilizing already successful resources is a powerful tactic we intend to employ in the marketing of Parayso. The combination of quality resources and a highly effective plan will allow us to gain momentum and attain clear dominance within the real estate industry. Our attention to detail and focus on quality will be determining factors in creating a development that exceeds expectations and delivers wholly on our promise of producing an outstanding product that has yet to be seen in the industry.

“You are either OUTSTANDING or invisible.”

-Seth Godin Award winning author

Unique Property Characteristics

The Parayso property is an exceptionally unique location possessing rolling dunes which elevate 90-feet above the pristine beach. These elevated dunes provide a perfect observatory to allow residents to enjoy the beauty of the ocean, the beach and the abundant marine life. Parayso is exclusive, private and secured. Such an environment provides families and friends an avenue to succumb to the benefits of pure nature with lifelong relationships.

Luxurious Sater Design Collection Homes

Developing and maintaining key partnerships in the luxury real estate marketplace will allow Parayso to gain credibility and build a positive, established reputation within the industry. It is essential that the pure beauty of the natural land be accompanied by similar structural beauty. An established partnership with one of the most accredited designers in the luxury real estate market solidifies this goal. Dan F. Sater II, President and CEO of The Sater Companies and Sater Design Collections, Inc. is our partner in architectural design. Possessing over 35 years of industry specific experience qualifies Dan as a certified Professional Building Designer, Certified Green Building Professional, active member of the American Institute of Building Design and a professional member of the Institute of Classical Architecture. His ability to create home designs with open flowing interiors that interact and compliment expansive outdoor spaces is unparalleled. Dan Sater’s tireless dedication to crafting homes reflects his unique sense of casual elegance and has earned international acclaim in the material form of 450 design awards.

Private Community with Resort Amenities

Whereas a resort is a location where people come and go with the seasons, Parayso is a private community with permanent owners. The Parayso promise is to provide resort type amenities and more to the private homeowner. The difference between a resort and Parayso shapes the persona of our development which is extremely important in defining our market. As such, our development team has singled out the best in the industry to assist in the planning and execution of our community.

Johnathon De Young, a Russ Lyon Sotheby's International Realty Luxury Estate Specialist, who brokers in Scottsdale, Arizona, has joined the Parayso team as a lead consultant. Johnathon brings an incredible array of talents and will greatly assist in developing the International Marketing Plan utilizing powerful web-based software and developing a strong National Association of Realtors (NAR) referral program that is made available by NAR to luxury real estate brokers throughout the world. The Transnational Referral Certification (TRC) is a designation that allows for international brokers to refer clients to other TRC brokers and attain assurance that their referred clients will receive the highest level of service and that they, the referring brokers, will also receive substantial referral fees, as clients make purchases from the selling broker. A very high percentage of luxury real estate is viewed and researched by the potential purchasers online. The program will also reach out to the international luxury brokers who will be educated about the development and the attractive TRC program. Many brokers are very influential with their clients and help build the client’s real estate portfolio. These types of marketing campaigns will produce accelerated gross sales and help drive a high degree of absorption. Such marketing campaigns are already in place and Parayso will be maximizing, executing and promoting them.

Gary Kerney

Gary Kerney served as Senior Vice President of Design, Planning, and Development for Landmark Land Company through 2010, has over 25 years’ experience in residential, commercial and golf course development. His accomplishments include overseeing construction of PGA WEST as well as many other Landmark projects. His help in directing the overall planning and development for Parayso will be invaluable. Gary will work closely with Jim Awtrey (see Parayso World Class Golf) to provide Parayso residents the finest land plan conceivable, maximizing ocean, golf course and mountain views.

“I have had the privilege of being involved in some of the finest residential life style communities in the United States and I am excited about bringing that experience to this very special property. Access to beach front property with the privilege of building homes and golf is something I thought I might never see again and I am really excited about the opportunity”.

Standing atop the Parayso dunes allows residents to view the gold-encrusted Sonoran mountains and the 68,000-acre preserve, Sierra el Álamo. A short distance from Parayso, Sierra el Álamo provides the Parayso community countless hours of adventure and exploration of the vast treasures that the mountains have to offer. Parayso and Sierra el Álamo are connected via ownership affiliation, thus allowing for preferred use by Parayso residents.

Parayso World Class Golf

For the past 20 years, golf has experienced unprecedented growth with respect to new course development as a key recreational amenity to planned unit developments across the United States. These developments were primarily designated as second home communities. The lots lining the golf course sold at premium prices because of their open space and dramatic views. Golf courses brought more value to developments resulting in the allocation of excessive budgets on design and construction. During this era, course costs ranged from $15M to $25M with annual maintenance costs in excess of $1 million. The precise design and care of these courses were, often times, overshadowed by the high cost of memberships. These costs drove the market away from golf as an amenity. As a result, the golf industry commissioned studies to determine how to appeal to current recreational golfers and increase the number of rounds played. The studies identified the following as barriers to growing the game and increasing rounds – time, cost and difficulty.

The results presented a challenge requiring the development of a partnership of professionals who had first-hand experience with regard to this period of high residential golf course growth, thus identifying trends attractive to the next generation golfing community.

Jim Awtrey

During the period 1988-2005, Jim served as Executive Director and CEO of the PGA of America, the world’s largest working sports organization. Subsequently, Jim joined the Landmark Land Company located in Baltimore, Maryland as Senior Vice President of Business Development. He has served as a member of the Landmark Board of Directors.

“I have been involved with the Parayso project for several years and believe the location to be one of the few remaining places in North America where homes with beach access can be built with access to the ocean and its rich and abundant sea life. Our concept for using golf as a recreational amenity revolves around a world class Championship course with views of the ocean, lakes and mountains. The best views of a golf course are the green complexes and having holes on the dunes will enable us to enhance the ocean views with the best golf has to offer. We will be able to preserve and protect our natural resources while eliminating some of the barriers to playing and enjoying the game. I believe Parayso will lead the way as an efficient example of the new highly amenitized life style community”.

Jim has analyzed and confirmed our market research and will serve as Director of Strategic Planning. Jim believes in relationship marketing, a form of marketing that is often underutilized. Relationship marketing is a neighbor advising a friend about a good experience which usually ends up in a referral sale. It is people looking to others they trust whom they feel are on the cutting edge of an industry to help assist in their decision. It is essentially the “Good Housekeeping Seal of Approval”. Another highly effective, yet unconventional, approach is using sponsors (innovators) to reach interested potential buyers (early adopters). By creating a base of early adopters, a strong and loyal client base can be formed which will be invaluable for the growth of the development through referrals. Early adopters not only buy real estate or a golf membership, but they also buy into the entire development and therefore, have a vested interest in its success.

Leading-Edge Green Technologies

Over the past five years much effort has been made in locating the most innovative building materials and technologies in the marketplace. Parayso will utilize advanced building materials and systems to create the most energy-efficient, aesthetically pleasing environment for its residents. We believe such state-of-the-art and professionally designed homes will become the new luxury standard in fine living.

Government Investment and Commitment

The Mexican government has promised and continues to provide funding for major infrastructure which has helped shape world travel, tourism and retirement to Mexico. There are more than one million Americans living in Mexico and there has been a significant increase in Canadian, European and Asian investment in recent years. The World Travel and Tourism Council (WTTC) has predicted that Mexico would soon be the second fastest growing travel destination. In 2005, Mexico claimed 15% of the world’s tourism market.

A recent past President of Mexico, Felipe Calderón, became the first head of state to join the World Tourism Organization (UNWTO) and World Travel and Tourism Council (WTTC) joint campaign highlighting the importance of travel and tourism to global growth and development.

President Calderón was presented an Open Letter by UNWTO Secretary-General, Taleb Rifai and WTTC President and CEO, David Scowsill, outlining travel and tourism's position as one of the world's largest generators of sustainable enterprises and decent jobs, a powerful driver of socio-economic growth and development and a key player in the transformation to the Green Economy.

"President Calderón is leading the way in recognizing the enormous contribution Travel & Tourism makes to the economy and its power to boost GDP, employment and exports, and drive economic growth," said Mr. Scowsill. "His willingness to join the industry in exploring new and smarter ways to help tourism achieve its full potential sends a clear signal to other governments around the world."

The year of 2011 was declared the Year of Tourism in Mexico and President Calderón called for a united effort across all government ministries and departments to promote the sector. The Letter was presented on the occasion of the signing of the National Agenda for Tourism which, given the weight of tourism to the national economy, has the full support and commitment of the country's authorities and private sector. Mexico's current President, Enrique Nieto, has carried on with these programs with intense focus on travel and tourism.

The World Travel & Tourism Council (WTTC) was established in 1990 with Members representing the world's foremost leaders in the private sector of Travel & Tourism. It aims to promote the importance of the industry as a generator of economic growth, encourage public-private partnerships, and persuade governments to adopt policies that will allow the industry to thrive. WTTC's annual Global Travel & Tourism Summit brings together over 1,000 delegates to discuss the opportunities, challenges and issues facing the industry, while its Tourism for Tomorrow Awards recognize the industry's power to be a positive force in sustainability.

The World Tourism Organization (UNWTO: www.UNWTO.org), a United Nations specialized agency, is the leading international organization with the decisive and central role in promoting the development of responsible, sustainable and universally accessible tourism. It serves as a global forum for tourism policy issues and a practical source of tourism know-how. Its membership includes 154 countries, 7 territories, 2 permanent observers and over 400 Affiliate Members.

Sonora, Mexico and Market Position

The state of Sonora is in an excellent position to exploit, and is committed to, the vast tourism and retirement opportunities that exist and Parayso is expected to be an important part of the stimulus within the state and region. The new international airport, coastal highway and marina investments provide critical infrastructure needed for real estate growth for this new and emerging “Gold Coast.”

Puerto Penasco is on Sonora's northeastern shore of the Sea of Cortez, 60 miles south of the international border at Lukeville/Sonoyta. It is a booming vacation destination with tourism being the most important economic activity. Development to date includes over 40 condominium resorts and numerous restaurants and hotels. Travel and Leisure Magazine rated Puerto Penasco as one of the Top 5 Trips for the new century. With 50 miles of pristine coastline between Puerto Penasco and Parayso, Parayso residents will undoubtedly travel to this fun-filled, vibrant fishing and tourist town.

El Desemboque, a small fishing village, is located approximately 60 miles south of Puerto Penasco and 10 miles south of Parayso on the Sea of Cortez. The area’s untouched beauty, agriculture and pristine beaches far surpass those of Puerto Penasco. The Mexican government has selected the area around El Desemboque to be a key future tourist destination. The government is close to completing a new coastal highway (Costera) that will run along the coast of Sonora to the United States, providing safe travel conditions to the small pristine villages that dot the eastern coastline. Parayso’s main entrance road connects to this new coastal highway and will greatly reduce drive time from major cities in Arizona and California. Of equal importance, construction of the Del Mar de Cortez International Airport is complete and will allow travelers an air transportation hub within a forty-five minute drive or 15 minute helicopter hop to Parayso’s main entrance.

Puerto Penasco has greatly benefited from its proximity to the United States’ border and multiple populous locations in the United States. Parayso and El Desemboque will undoubtedly benefit as well. There are numerous markets within reasonable driving distance to the existing resort areas of Puerto Penasco and the future community of Parayso. Although the direct feeder markets contain approximately 10 million people, Arizona and California contain the majority of the drive markets and contain 6 and 22 million people, respectively. Arizona is the largest target drive market with two of its largest cities within 215 miles. The Phoenix airport is the sixth busiest airport in the U.S., servicing 18 major airlines. Tucson also operates a major airport, has a population of over one million people and attracts tourists and “snowbirds” from all over the United States and Canada. With the addition of the Del Mar de Cortez International Airport, Parayso will not only attract the existing drive market but will also emerge as an international flight destination. Although the marinas in Puerto Peñasco are modest in size, the government announced in 2001 its master “Nautical Ladder” plan to promote boating activity up and down the Sea of Cortez. Puerto Penasco is listed as a part of this project and has received both infrastructure and marina related upgrades as part of the effort. The first phase of the Penasco expansion is already complete. As a second phase, Holland America, one of the largest luxury cruise lines in the world, has announced the creation of a major port which will act as the home port for four other cruise destinations and in late 2012 the Sonoran government allocated $60 million USD for the construction of this port which is now well underway.

In summary, Parayso significantly benefits from its proximity to the U.S border and major U.S. cities. Value is greatly enhanced by the completion of the Coastal Highway, Del Mar de Cortez International Airport, Nautical Ladder and a home port for world renowned cruise lines. The government has clearly committed to building airports, highways and various infrastructure while focusing on the safety of visitors and those who retire in Mexico.

The Sater Group Luxury Home Design and Architecture

Dan F. Sater II is the President and CEO of The Sater Companies, providing awardwinning, planning and design services for over 35 years, securely planting its reputation as one of the country’s most recognized luxury residential design firms.

Dan is a Certified Professional Building Designer, Certified Green Professional, Certified Professional Member and President of the American Institute of Building Design, and a Professional Member of the Institute of Classical Architecture. His ability to create home designs with open flowing interiors that interact with expansive outdoor spaces is unmatched. In fact, Sater designs have earned over 450 design regional and national awards. (www.satergroup.com).