Office Unit with St. Francis
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 Market217
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
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: Sep 8 at 12:06AM
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.
This Class B office condo contains 2,348 square feet arranged with seven private offices, each featuring windows for natural light. The suite also includes two ADA-compliant restrooms and a central break room. Built in 1999, the property has a flat roof and is served by public water and public sewer.
The office unit fronts St. Francis Drive in Santa Fe and carries C-4 zoning. A new 5-year NNN lease with options is in place, with tenant occupancy scheduled for 4/1/2026. The property is offered as a furnished commercial office asset with a defined lease structure and dedicated suite layout.
The office unit fronts St. Francis Drive in Santa Fe and carries C-4 zoning. A new 5-year NNN lease with options is in place, with tenant occupancy scheduled for 4/1/2026. The property is offered as a furnished commercial office asset with a defined lease structure and dedicated suite layout.
Key Highlights
- 2,348‑square‑foot Class B office condo
- Seven private offices with windows
- Two ADA‑compliant restrooms and central break room
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
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 with seven private offices, two ADA-compliant restrooms, and a central break room.
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: 2,348‑square‑foot Class B office condo; Seven private offices with windows; Two ADA‑compliant restrooms and central break room
