Palm Springs Multifamily Investment
For Sale
$870,000
3737 Calle De Carlos, Palm Springs, CA 92264
Five-unit income property in Palm Springs' Demuth Park submarket.
Property Size3,800 SF
Lot Size0.23 Acres
Price / SF$228.95
Days on Market153
Property Features for 3737 Calle De Carlos
General Information
Standard status
Active
Size
3,800 SF
Lot size
0.23 Acres
Property subtype
Commercial
Amenities
Community Facility
Mid Block
Building Details
Year Built
1967
Listing Agency:
MARCUS & MILLICHAP
(909) 456-3400
Listed By:
GISELE PINEDO · License #02188347
Source:
Corcoran
Added: Apr 2
Changed: Aug 31
Last Checked: Sep 1 at 6:23PM
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 MARCUS & MILLICHAP
Investment Insights
Based on property information with market context.
Located at 3737 E Calle De Carlos in Palm Springs, California, this multifamily investment property offers an opportunity to acquire a five-unit income-producing asset. Constructed in 1967, the property features approximately 3,800 square feet of rentable living area on an approximately 10,018 square foot lot. The unit mix consists of large studio floor plans with open layouts and private rear patios. Open parking and an on-site laundry room are available for tenants. The property is individually metered for electricity and each unit is equipped with wall-mounted air conditioning units. Water, sewer, and trash utilities are paid by ownership. The property is located in the Demuth Park submarket of Palm Springs, an area with consistent rental demand and proximity to key lifestyle and employment drivers, and benefits from a well-established residential area with close proximity to Palm Springs International Airport and Palm Springs High School. The property maintains classic interior finishes, offering a foundation for future operational improvements.
Key Highlights
- Five‑unit income‑producing property in Palm Springs, California
- Located in the Demuth Park submarket, an area with consistent rental demand
- Currently performing at a 5.75% cap rate
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
$61,509
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
7.07%
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%
$1,230,180
$1.2M
Cap Rate 7%
$878,700
$878.7K
Cap Rate 9%
$683,433
$683.4K
Market Conditions
NOI Build-Up for 3,800 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
$114.0K $30.00/SF
− Vacancy
−$2.2K −$0.57/SF
EGI
$111.8K $29.43/SF
− OpEx
−$50.3K −$13.24/SF
NOI
$61.5K $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%
$1,230,180
Cap Rate 7%
$878,700
Cap Rate 9%
$683,433
Alternative Uses
Best Use
Apartment 5plus
$878.7K
$768.9K – $1.03M
NOI $61,509 @ 7.0% cap · market cap 7.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.14M
$996.1K – $1.33M
NOI $79,689 @ 7.0% cap · market cap 9.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
708
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 - Five-unit income property in Palm Springs' Demuth Park submarket.
Where is this apartment building located?
The property is located at 3737 Calle De Carlos Palm Springs, CA.
What is the asking price?
The asking price for this property is $870,000.
What are key features of this property?
This property features: Five‑unit income‑producing property in Palm Springs, California; Located in the Demuth Park submarket, an area with consistent rental demand; Currently performing at a 5.75% cap rate
