A rare mid-course correction in Palm Desert planning

A notable development shift just unfolded in Palm Desert, and it reveals how growth decisions are being shaped across the desert.

The project at the southwest corner of Frank Sinatra Drive and Portola Avenue has been under debate for some time. This 79-acre parcel, once approved for multifamily apartments, is now being redesigned as a single-family home community known as Catavina East.

Originally, the site carried approvals for 13 three-story apartment buildings totaling about 394 units. However, after strong objections from nearby residents, Blue Fern Development returned to the city last week with revised plans for approximately 156 single-family homes.

The city has signaled support for this new direction. As a result, one of Palm Desert’s remaining infill parcels is now moving toward lower-density housing.

From apartments to single-family homes

Initially, the apartment proposal aligned with broader housing goals across California. However, once details became widely known, nearby residents raised concerns about density, traffic, and compatibility with surrounding homes.

In response — and after the project’s entitlements lapsed in early 2025 — Blue Fern Development submitted a new proposal centered on for-sale single-family homes.

The revised project, now known as Portola Springs (Catavina East), sits adjacent to the approved Catavina community. That neighborhood will bring 546 single-family homes to the former Santa Rosa Golf Club course, which closed in 2015.

Architectural and home designs for Catavina East have not yet been submitted. Instead, a future homebuilder will bring those plans forward in a later phase.

Together, these projects signal a clear shift toward ownership housing in this part of Palm Desert. As a result, the updated plan aligns more closely with surrounding neighborhoods and reflects continued demand for single-family homes.

Community pushback reshaped the outcome

Neighborhood response played a meaningful role in the project’s evolution. Residents focused primarily on:

• Building height and density

• Traffic impact

• Compatibility with nearby homes

• Long-term neighborhood character

Because of that feedback, the developer pivoted. Rather than pushing the multifamily concept forward, the team returned with a proposal that better matched community expectations while still allowing the site to move toward development.

Typically, once a project receives approval, developers move forward without major revisions. In this case, however, community input — combined with shifting market realities — produced a substantially different outcome.

What this signals for Palm Desert real estate

For buyers, sellers, and property owners, this decision offers insight into how growth is unfolding locally.

Palm Desert continues balancing several competing factors:

• State housing requirements

• Local planning priorities

• Infrastructure capacity

• Neighborhood character

• Market demand for ownership housing

By replacing a dense apartment proposal with single-family homes, the city reinforces the strength of established residential neighborhoods. At the same time, the shift signals continued confidence in the for-sale housing market.

Even so, Palm Desert continues to evaluate where higher-density housing belongs. This decision simply reflects a site-specific adjustment rather than a citywide change in direction.

The broader development picture across the desert

Across the Coachella Valley, multifamily construction has expanded as cities work to meet state housing mandates. Meanwhile, projects continue to evolve as feedback comes in and plans meet real-world constraints.

Some sites will move toward higher density. Others — like this one — may shift toward lower-density residential when market demand and community expectations align.

For homeowners and future buyers, these planning decisions influence future inventory and pricing long before construction begins.

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Frequently Asked Questions

Why was the apartment project changed?

The original multifamily plan drew significant neighborhood feedback related to density, building height, traffic, and compatibility with surrounding homes. The developer returned with a lower-density single-family concept that better aligned with community expectations.

Does this mean Palm Desert is no longer building apartments?

No. Palm Desert and other desert cities continue approving multifamily housing to meet state housing requirements. This decision reflects a site-specific adjustment rather than a citywide shift away from apartments.

How many apartment units were originally approved for this Palm Desert site?

The original approval allowed for 13 three-story apartment buildings totaling approximately 394 units at the corner of Frank Sinatra Drive and Portola Avenue.

How many homes are proposed in the new single-family plan?

The revised proposal submitted by Blue Fern Development includes approximately 156 detached single-family homes.

How could this impact Palm Desert home values?

Lower-density development in established residential areas may help preserve neighborhood character and support long-term single-family demand. Future inventory, pricing trends, and absorption rates are influenced by planning decisions like this.