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Historic Desert Hot Springs resort slated for major renovation

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Two Bunch Palms Resort & Spa, one of the region’s oldest mineral water spas, was bought by a show biz consortium for nearly $10 million.

Hollywood producers Steve Markoff, Donald Kushner and Elie Samaha bought the rambling 52-room resort in Desert Hot Springs with Westside real estate developer Gidi Cohen. The new owners said they will immediately begin an upgrade of the 270-acre property.

“We are laying the groundwork for major renovations throughout the resort, including a joint venture with a widely successful spa operator and expansion to include stand-alone 3,000-square-foot villas, senior housing and a private postoperative surgery rehab facility,” Cohen said.

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Two Bunch Palms dates to the 1920s. Chicago mobster Al Capone allegedly built and used the sprawling complex as his West Coast hide-out. Capone’s personal bungalow is believed to include underground escape tunnels and a sentry tower for armed bodyguards.

The new owners are also planning to market a line of spa products and beverages made with the spa’s lithium-rich spring water, Cohen said.

His company, Cohen & Associates, will manage the resort and oversee improvements.

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