Deepwell Apartments Multifamily Investment
For Sale
$5,995,000
1680 East Palm Canyon Drive, Palm Springs, CA 92264
30+1 unit multifamily community in Palm Springs' Deepwell Estates.
Property Size20,296 SF
Lot Size0.94 Acres
Price / SF$295.38
Days on Market129
Property Features for 1680 East Palm Canyon Drive
General Information
Standard status
Active
Size
20,296 SF
Lot size
0.94 Acres
Property subtype
Multifamily
Listing Agency:
CBRE - Ontario
(909) 418-2071
Listed By:
Eric Chen · License #01489184
(909) 418-2071
Source:
Cbre
Added: Apr 15
Changed: Aug 14
Last Checked: Aug 20 at 7:17AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CBRE - Ontario
Investment Insights
Based on property information with market context.
Deepwell Apartments, a 30+1 unit multifamily community, is located at 1680 E Palm Canyon Drive in Palm Springs, CA. The ±20,296 square feet building is situated on a ±40,946 square feet lot in Deepwell Estates. The property features a mix of studios, 1-bedroom/1-bathroom, 2-bedroom/1-bathroom, and a 3-bedroom/2-bathroom unit. All units feature high-end finishes, including woodgrain-look ceramic tile flooring, designer tile in kitchens and bathrooms, and stainless steel appliances. Exterior upgrades include a gated exterior. The property offers a pool, contemporary desert landscaping, and mountain views. Located along the Palm Canyon Drive corridor, the property is near the Smoke Tree Shopping Center, hiking trails, and the boutiques and restaurants of downtown Palm Springs. The property has access to State Route 111, providing connectivity to the Coachella Valley. The property may benefit from the Inland Empire’s continued economic expansion and proximity to regional drivers, including the new Amazon Logistics facility and the Agua Caliente Band of Cahuilla Indians.
Key Highlights
- High‑Yielding Opportunity: 6.59% Cap Rate and 6.07% Cash‑on‑Cash return.
- "Turn‑Key" Asset: Substantial recent renovations, including high‑end finishes and replaced HVAC units.
- Premier Deepwell Estates Location: Situated in a prestigious neighborhood known for mid‑century modern architecture, near shopping and hiking.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$328,521
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.48%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$6,570,420
$6.6M
Cap Rate 7%
$4,693,157
$4.7M
Cap Rate 9%
$3,650,233
$3.7M
Market Conditions
NOI Build-Up for 20,296 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$608.9K $30.00/SF
− Vacancy
−$11.6K −$0.57/SF
EGI
$597.3K $29.43/SF
− OpEx
−$268.8K −$13.24/SF
NOI
$328.5K $16.19/SF
Area
Riverside County, CA
Vacancy
1.90%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$6,570,420
Cap Rate 7%
$4,693,157
Cap Rate 9%
$3,650,233
Alternative Uses
Best Use
Apartment 5plus
$4.69M
$4.11M – $5.48M
NOI $328,521 @ 7.0% cap · market cap 5.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.08M
$5.32M – $7.09M
NOI $425,624 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
430
Businesses Nearby
Explore this area
Business Placement
Demographics for 92264, CA
19,254
Population
17,518
Households
1.1
Avg Household Size
61
Median Age
48%
College-Educated
94%
High-School Grad
50.9 sq mi
ZIP Area
378
Density / Sq Mi
$75,246
Median Household Income
$46,756
Median Earnings
$1,581
Median Rent
$498,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - 30+1 unit multifamily community in Palm Springs' Deepwell Estates.
Where is this apartment building located?
The property is located at 1680 East Palm Canyon Drive Palm Springs, CA.
What is the asking price?
The asking price for this property is $5,995,000.
What are key features of this property?
This property features: High‑Yielding Opportunity: 6.59% Cap Rate and 6.07% Cash‑on‑Cash return.; "Turn‑Key" Asset: Substantial recent renovations, including high‑end finishes and replaced HVAC units.; Premier Deepwell Estates Location: Situated in a prestigious neighborhood known for mid‑century modern architecture, near shopping and hiking.
