Building Details

Year built 1989

Listing Agency: Keller Williams Realty k***@kw.com Show Phone

Listed By: Leslie Gallatin-Giorgetti · License #47708 Show Phone

Added: Feb 16 Changed: Aug 19 Last Checked: Sep 3 at 5:06PM

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MLS# 202600307

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 2,279-square-foot conventional restaurant property was built in 1989 and includes a commercial kitchen with furnishings and operating equipment. The dining program spans the main building and an on-site Santa Fe Railroad railcar configured for additional indoor seating. Outdoor dining space overlooks the Madrid Museum and has also accommodated live music. A state-of-the-art fire alarm system is in place.

The 0.17-acre property is commercially zoned and positioned on Main Street in Madrid, with designated parking along State Highway 14 directly in front of the restaurant. The property is currently leased to The Refinery. Its setting in the historic Madrid community places it along the Turquoise Trail National Scenic Byway, between Santa Fe and Albuquerque, with visitor activity associated with the surrounding town and route.

Key Highlights

• 2,279‑square‑foot restaurant property on 0.17 acres
• Commercial kitchen conveys with furnishings and operating equipment
• On‑site Santa Fe Railroad railcar configured for additional indoor dining

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

$34,631

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

3.96%

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%

$692,620 $692.6K

Cap Rate 7%

$494,729 $494.7K

Cap Rate 9%

$384,789 $384.8K

Market Conditions

NOI Build-Up for 2,279 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

$49.2K $21.60/SF

− Vacancy

−$3.1K −$1.34/SF

EGI

$46.2K $20.26/SF

− OpEx

−$11.5K −$5.07/SF

NOI

$34.6K $15.20/SF

Area

Santa Fe County, NM

Vacancy

6.20%

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%

$692,620

Cap Rate 7%

$494,729

Cap Rate 9%

$384,789

Alternative Uses

Best Use

Specialty Retail

$494.7K

$432.9K – $577.2K (±1% cap)

NOI $34,631 @ 7.0% cap · market cap 3.96%

Second Best

Industrial

$161.9K

$141.7K – $188.9K (±1% cap)

NOI $11,333 @ 7.0% cap · market cap 1.30%

Theoretical Best

Office A

$618.8K

$541.5K – $722.0K (±1% cap)

NOI $43,319 @ 7.0% cap · market cap 4.95%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

106

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 87010, NM

1,165

Population

898

Households

1.3

Avg Household Size

58

Median Age

63%

College-Educated

100%

High-School Grad

166.7 sq mi

ZIP Area

7

Density / Sq Mi

$45,490

Median Household Income

$21,840

Median Earnings

$1,375

Median Rent

$450,000

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Commercial restaurant property with a furnished kitchen, indoor and outdoor dining areas, and designated parking along State Highway 14.

Where is this conventional restaurant located?

The property is located at 2849 NM 14 Madrid, NM.

What is the asking price?

The asking price for this property is $875,000.

What are key features of this property?

This property features: 2,279‑square‑foot restaurant property on 0.17 acres; Commercial kitchen conveys with furnishings and operating equipment; On‑site Santa Fe Railroad railcar configured for additional indoor dining