Leased Medical Office
For Sale
$925,000
111 & 127 Sandoval Rd, Los Lunas, NM 87031
Medical office building leased by Optum under a long-term lease, with parking across the street.
Property Size4,844 SF
Price / SF$190.96
Days on Market43
Property Features for 111 & 127 Sandoval Rd
General Information
Standard status
Active
Size
4,844 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Tenancy
Single
Listing Agency:
Century 21 Champions
Listed By:
Nancy A Montoya
Source:
Thesouthwestlife
Added: Jul 29
Changed: Sep 8
Last Checked: Aug 25 at 5:44AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Century 21 Champions
Investment Insights
Based on property information with market context.
This leased medical office building at 111 Sandoval Rd SW, Los Lunas, NM 87031 is currently leased by Optum under a long-term lease agreement. The property has served as a hub for medical services for decades, supporting its established fit for medical practice use.
Access is convenient from I-25 via the Los Lunas exit. From there, travel east on Main Street, then turn right on Sandoval Road to the property on the right.
The building sits on a spacious lot and includes a large parking area across the street, helping accommodate patients and staff. With its medical-focused history and an in-place long-term tenant, the property is positioned for buyers and operators looking for an operationally straightforward medical office asset.
Access is convenient from I-25 via the Los Lunas exit. From there, travel east on Main Street, then turn right on Sandoval Road to the property on the right.
The building sits on a spacious lot and includes a large parking area across the street, helping accommodate patients and staff. With its medical-focused history and an in-place long-term tenant, the property is positioned for buyers and operators looking for an operationally straightforward medical office asset.
Key Highlights
- Leased by Optum under a long‑term lease agreement
- 2,903 SF medical office building
- Access from I‑25 via the Los Lunas exit to Main Street, then Sandoval Road
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
$57,547
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
6.22%
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%
$1,150,940
$1.2M
Cap Rate 7%
$822,100
$822.1K
Cap Rate 9%
$639,411
$639.4K
Market Conditions
NOI Build-Up for 4,844 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
$95.9K $19.80/SF
− Vacancy
−$19.2K −$3.96/SF
EGI
$76.7K $15.84/SF
− OpEx
−$19.2K −$3.96/SF
NOI
$57.5K $11.88/SF
Area
Valencia County, NM
Vacancy
20.00%
Lease Rate
$19.80 /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%
$1,150,940
Cap Rate 7%
$822,100
Cap Rate 9%
$639,411
Alternative Uses
Best Use
Office B
$822.1K
$719.3K – $959.1K
NOI $57,547 @ 7.0% cap · market cap 6.22%
Second Best
Healthcare Medical
$695.0K
$608.2K – $810.9K
NOI $48,653 @ 7.0% cap · market cap 5.26%
Theoretical Best
Office A
$1.00M
$876.4K – $1.17M
NOI $70,114 @ 7.0% cap · market cap 7.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
551
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 87031, NM
45,208
Population
16,917
Households
2.7
Avg Household Size
37
Median Age
21%
College-Educated
85%
High-School Grad
255.5 sq mi
ZIP Area
177
Density / Sq Mi
$61,947
Median Household Income
$34,167
Median Earnings
$1,083
Median Rent
$206,600
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Bosque Animal Clinic — 835 E Main St Suite 101, Los Lunas, NM 87031
- Animal Hospital of Los Lunas — 419 Main St SW, Los Lunas, NM 87031
- LOS LUNAS ANIMAL CLINIC — 575 NM-314, Los Lunas, NM 87031
- Thompson III William DVM — 575 NM-314, Los Lunas, NM 87031
Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office building leased by Optum under a long-term lease, with parking across the street.
Where is this medical office space located?
The property is located at 111 & 127 Sandoval Rd Los Lunas, NM.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: Leased by Optum under a long‑term lease agreement; 2,903 SF medical office building; Access from I‑25 via the Los Lunas exit to Main Street, then Sandoval Road
