Office Condo with Private
For Sale
$750,000
228 S St Francis Drive, Santa Fe, NM 87501
CommercialSale, Santa Fe, NM
Property Size2,348 SF
Lot Size0.03 Acres
Price / SF$319.42
Days on Market206
Property Features for 228 S St Francis Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C-4
Parking
7
Directions
St Francis between Agua Fria and Alameda @ Roybal St.
Standard status
Active
APN
910000475
Size
2,348 SF
Lot size
0.03 Acres
Taxes and HOA fees
Tax Description
UNIT C ROYBAL STREET OFFICE T17N R 9E S23 CONDOMINIUMS
Legal Description
UNIT C ROYBAL STREET OFFICE T17N R 9E S23 CONDOMINIUMS
Utilities
Sewer type
Public Sewer
Water source
Public
Amenities
private offices
ADA-compliant restrooms
central break room
Building Details
Year built
1999
Roof type
Flat
Listing Agency:
Branch Realty
(505) 984-8100
Listed By:
Darren Branch · License #15521
(505) 920-7777
Added: Feb 3
Changed: Aug 19
Last Checked: Aug 28 at 9:06AM
MLS# 202600404
Copyright © 2026 Santa Fe Association of REALTORS®, Inc. 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.
228 S St Francis Drive is a turn-key Class B office condo offered with a new 5-year NNN lease that includes options. The tenant is scheduled to occupy the suite on 4/1/2026.
The suite is designed for professional office use and includes seven private offices, each with windows for natural light, along with two ADA-compliant restrooms. A central break room supports daily operations. The property is located with St. Francis Drive frontage and is zoned C-4.
Built in 1999, the building features a flat roof. Utilities include public water and public sewer service. The lot size is 0.03 acres, and the property size is 2,348 square feet.
The suite is designed for professional office use and includes seven private offices, each with windows for natural light, along with two ADA-compliant restrooms. A central break room supports daily operations. The property is located with St. Francis Drive frontage and is zoned C-4.
Built in 1999, the building features a flat roof. Utilities include public water and public sewer service. The lot size is 0.03 acres, and the property size is 2,348 square feet.
Key Highlights
- New 5‑year NNN lease with options; tenant occupancy scheduled for 4/1/2026
- St. Francis Drive frontage
- Suite includes seven private offices with windows for natural light
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
$32,332
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
4.31%
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%
$646,640
$646.6K
Cap Rate 7%
$461,886
$461.9K
Cap Rate 9%
$359,244
$359.2K
Market Conditions
NOI Build-Up for 2,348 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
$50.7K $21.60/SF
− Vacancy
−$7.6K −$3.24/SF
EGI
$43.1K $18.36/SF
− OpEx
−$10.8K −$4.59/SF
NOI
$32.3K $13.77/SF
Area
Santa Fe County, NM
Vacancy
15.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$646,640
Cap Rate 7%
$461,886
Cap Rate 9%
$359,244
Alternative Uses
Best Use
Office B
$461.9K
$404.2K – $538.9K
NOI $32,332 @ 7.0% cap · market cap 4.31%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$637.6K
$557.9K – $743.9K
NOI $44,631 @ 7.0% cap · market cap 5.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,389
Businesses Nearby
Explore this area
Business Placement
Demographics for 87501, NM
15,116
Population
10,480
Households
1.4
Avg Household Size
58
Median Age
61%
College-Educated
97%
High-School Grad
50.6 sq mi
ZIP Area
299
Density / Sq Mi
$81,229
Median Household Income
$52,851
Median Earnings
$1,516
Median Rent
$649,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Class B office condo in C-4 zoning with a new 5-year NNN lease and a tenant move-in date of April 1, 2026.
Where is this office units located?
The property is located at 228 S St Francis Drive Santa Fe, NM.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: New 5‑year NNN lease with options; tenant occupancy scheduled for 4/1/2026; St. Francis Drive frontage; Suite includes seven private offices with windows for natural light
