Renovated 5-Unit Apartment
For Sale
$1,357,900
521 Desert Way, Palm Springs, CA 92264
MULTI_FAMILY - Palm Springs, CA
Property Size3,900 SF
Lot Size0.23 Acres
Price / SF$348.18
Days on Market47
Property Features for 521 Desert Way
General Information
Property type
Residential Multi Family
Property subtype
Other
Bedrooms
8
Bathrooms
5
Full bathrooms
3
Rooms
Bedroom 8, Bedroom 3, Bedroom 1, Bedroom 5, Bathroom 1, Bathroom 3, Bathroom 2, Bathroom 4, Bedroom 6, Bedroom 4, Bedroom 7, Bathroom 5, Bedroom 2
Parking
8
Parking features
Assigned
Spa
1
Pool private
1
Subdivision
Demuth Park
Lot features
Landscaped, Landscaped
Standard status
Active
APN
680033011
Size
3,900 SF
Lot size
0.23 Acres
Utilities
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1963
Floors in Building
1
Number of units
5
Flooring type
Tile - Ceramic
Listing Agency:
HomeSmart
(760) 844-7500
Listed By:
Faith P Messenger
(760) 333-5956
Added: Jul 15
Changed: Jul 24
Last Checked: Aug 30 at 5:06PM
MLS# 219150331
Copyright © 2026 California Desert Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This renovated 5-unit apartment building at 521 Desert Way offers an income-producing setup with three long-term residents already in place. The property is described as turn-key, with a seller inventory list included for items outlined in the offering, subject to buyer verification.
The building is located in Palm Springs, within walking distance to the College of the Desert and Demuth Park, which is noted as a $7.5 million investment featuring 22 new pickleball courts, large and small dog parks, and an entrance to the new valley-wide CV Link. Nearby Prescott Reserve is also referenced.
The property is zoned R2, which the listing notes may allow additional residential-related uses beyond traditional long-term tenancy, subject to Palm Springs City approval. Potential uses referenced include senior living, recovery retreats, assisted living, multi-generational housing, and sober living.
The building is located in Palm Springs, within walking distance to the College of the Desert and Demuth Park, which is noted as a $7.5 million investment featuring 22 new pickleball courts, large and small dog parks, and an entrance to the new valley-wide CV Link. Nearby Prescott Reserve is also referenced.
The property is zoned R2, which the listing notes may allow additional residential-related uses beyond traditional long-term tenancy, subject to Palm Springs City approval. Potential uses referenced include senior living, recovery retreats, assisted living, multi-generational housing, and sober living.
Key Highlights
- 5‑unit apartment building in Palm Springs’ Demuth Park area; offers 3 long‑term residents for dependable cash flow
- Private pool and spa at the property
- Renovation includes ceramic tile flooring; heating is forced air and cooling is central air
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
$63,127
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
4.65%
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%
$1,262,540
$1.3M
Cap Rate 7%
$901,814
$901.8K
Cap Rate 9%
$701,411
$701.4K
Market Conditions
NOI Build-Up for 3,900 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
$117.0K $30.00/SF
− Vacancy
−$2.2K −$0.57/SF
EGI
$114.8K $29.43/SF
− OpEx
−$51.6K −$13.24/SF
NOI
$63.1K $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%
$1,262,540
Cap Rate 7%
$901,814
Cap Rate 9%
$701,411
Alternative Uses
Best Use
Apartment 5plus
$901.8K
$789.1K – $1.05M
NOI $63,127 @ 7.0% cap · market cap 4.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.17M
$1.02M – $1.36M
NOI $81,786 @ 7.0% cap · market cap 6.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
60%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
653
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 - Renovated 5-unit apartment building with three long-term residents and R2 zoning in Palm Springs.
Where is this apartment building located?
The property is located at 521 Desert Way Palm Springs, CA.
What is the asking price?
The asking price for this property is $1,357,900.
What are key features of this property?
This property features: 5‑unit apartment building in Palm Springs’ Demuth Park area; offers 3 long‑term residents for dependable cash flow; Private pool and spa at the property; Renovation includes ceramic tile flooring; heating is forced air and cooling is central air
