Mixed-Use Property with
For Sale
$540,000
2864 NM 14, Cerrillos, NM 87010
CommercialSale, Cerrillos, NM
Property Size3,723 SF
Lot Size0.18 Acres
Price / SF$145.04
Days on Market30
Property Features for 2864 NM 14
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Traditional Community with/in the Madrid Commercial Overlay
Interior features
InteriorSteps
Elementary school
Amy Biehl Community
Middle school
Milagro
High school
Santa Fe
Directions
In downtown Madrid, on east side of the road, across the street from Wild Hogs.
Standard status
Active
APN
079100952
Size
3,723 SF
Lot size
0.18 Acres
Taxes and HOA fees
Tax Description
IMPROVEMENT 020 T14N R 7E S25
HOA Fee
$20 Annually
Legal Description
IMPROVEMENT 020 T14N R 7E S25
Utilities
Sewer type
Septic Tank
Heating system
Propane (Heating)
Cooling system
Window Unit(s)
Amenities
courtyards
Building Details
Year built
1920
Flooring type
Tile, Wood, Flagstone
Building materials
Frame
Roof type
Metal, Shingle
Architectural style
Other
Listing Agency:
Barker Realty, LLC
(505) 982-9836
Listed By:
Michael S. Sanford · License #52569
(505) 916-6644
Added: Aug 6
Changed: Sep 2
Last Checked: Sep 4 at 12:06AM
MLS# 202603406
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 3,723-square-foot mixed-use property combines an approximately 1,400-square-foot storefront with three separate residential spaces. The residential component includes a 320-square-foot upstairs studio, a 612-square-foot downstairs one-bedroom apartment, and a 477-square-foot rear one-bedroom casita. Courtyards create separation between the casita and the primary building.
Recent improvements include a new roof along with electrical and plumbing updates. The 0.18-acre property is located in downtown Madrid at 2864 NM 14, with frame construction, flagstone, wood, and tile flooring, propane heat, window-unit cooling, and septic service. The building dates to 1920 and includes both shingle and metal roofing.
Recent improvements include a new roof along with electrical and plumbing updates. The 0.18-acre property is located in downtown Madrid at 2864 NM 14, with frame construction, flagstone, wood, and tile flooring, propane heat, window-unit cooling, and septic service. The building dates to 1920 and includes both shingle and metal roofing.
Key Highlights
- Approximately 1,400‑square‑foot storefront
- Three residential spaces: 320‑square‑foot studio, 612‑square‑foot one‑bedroom apartment, and 477‑square‑foot casita
- 3,723 square feet on 0.18 acres
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
$47,215
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
8.74%
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%
$944,300
$944.3K
Cap Rate 7%
$674,500
$674.5K
Cap Rate 9%
$524,611
$524.6K
Market Conditions
NOI Build-Up for 3,723 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
$73.7K $19.80/SF
− Vacancy
−$6.3K −$1.68/SF
EGI
$67.4K $18.12/SF
− OpEx
−$20.2K −$5.44/SF
NOI
$47.2K $12.68/SF
Area
Santa Fe County, NM
Vacancy
8.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
30.00%
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%
$944,300
Cap Rate 7%
$674,500
Cap Rate 9%
$524,611
Alternative Uses
Best Use
Office B
$732.4K
$640.8K – $854.4K
NOI $51,266 @ 7.0% cap · market cap 9.49%
Second Best
Apartment 5plus
$729.7K
$638.5K – $851.4K
NOI $51,081 @ 7.0% cap · market cap 9.46%
Theoretical Best
Office A
$1.01M
$884.6K – $1.18M
NOI $70,767 @ 7.0% cap · market cap 13.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
108
Businesses Nearby
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Downtown Madrid property combining commercial frontage, residential units, courtyards, and recent building-system improvements.
Where is this mixed-use property located?
The property is located at 2864 NM 14 Cerrillos, NM.
What is the asking price?
The asking price for this property is $540,000.
What are key features of this property?
This property features: Approximately 1,400‑square‑foot storefront; Three residential spaces: 320‑square‑foot studio, 612‑square‑foot one‑bedroom apartment, and 477‑square‑foot casita; 3,723 square feet on 0.18 acres
