Remodeled Restaurant on Two
For Sale
Contact for pricing
1218 SCHOFIELD Lane, Farmington, NM 87401
Upscale restaurant or office conversion opportunity on two lots.
Property Size1,890 SF
Price / SF$184.66
Days on Market914
Property Features for 1218 SCHOFIELD Lane
General Information
Standard status
Active
Size
1,890 SF
Property subtype
Land
Listing Agency:
RE/MAX of Farmington
(505) 860-2887
Listed By:
Elizabeth Tafoya · License #17823
Source:
Crexi
Added: Feb 10, 2024
Changed: Aug 11
Last Checked: May 12 at 10:59PM
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 RE/MAX of Farmington
Investment Insights
Based on property information with market context.
This property, formerly a laundromat, has been remodeled into an upscale restaurant. The interior features new booths, a new kitchen, and new bathrooms, along with an office area. Situated on two lots, the property also benefits from alley access. The seller offers the option to remove all interior restaurant fixtures, converting the space for office use. This property could be suitable for a soup and salad restaurant.
Key Highlights
- Remodeled upscale restaurant with new booths, kitchen, and baths.
- Situated on 2 lots with alley access.
- Option to convert to office space; seller will remove restaurant equipment.
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
$19,604
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
5.62%
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%
$392,080
$392.1K
Cap Rate 7%
$280,057
$280.1K
Cap Rate 9%
$217,822
$217.8K
Market Conditions
NOI Build-Up for 1,890 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
$27.9K $14.76/SF
− Vacancy
−$1.8K −$0.93/SF
EGI
$26.1K $13.83/SF
− OpEx
−$6.5K −$3.46/SF
NOI
$19.6K $10.37/SF
Area
San Juan County, NM
Vacancy
6.30%
Lease Rate
$14.76 /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%
$392,080
Cap Rate 7%
$280,057
Cap Rate 9%
$217,822
Alternative Uses
Best Use
Specialty Retail
$280.1K
$245.1K – $326.7K
NOI $19,604 @ 7.0% cap · market cap 5.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$391.0K
$342.1K – $456.2K
NOI $27,369 @ 7.0% cap · market cap 7.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
658
Businesses Nearby
30k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 76%
Shops & Services 22%
Home Improvements & Furnishings 2%
SONIC Drive In
Dining
17,438 visits/mo
0.4 miles
Blake's LotaBurger
Dining
5,154 visits/mo
0.4 miles
Marathon
Shops & Services
4,265 visits/mo
0.3 miles
Jiffy Lube
Shops & Services
1,627 visits/mo
0.4 miles
Airgas
Home Improvements & Furnishings
721 visits/mo
0.3 miles
Demographics for 87401, NM
44,724
Population
17,611
Households
2.5
Avg Household Size
34
Median Age
19%
College-Educated
88%
High-School Grad
132.8 sq mi
ZIP Area
337
Density / Sq Mi
$56,358
Median Household Income
$31,362
Median Earnings
$983
Median Rent
$202,400
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- USA Catering Service — 2010 E Main St, Farmington, NM 87401
Frequently Asked Questions
What type of property is this?
Restaurant - Upscale restaurant or office conversion opportunity on two lots.
Where is this restaurant located?
The property is located at 1218 SCHOFIELD Lane Farmington, NM.
What is the asking price?
The asking price for this property is $349,000.
What are key features of this property?
This property features: Remodeled upscale restaurant with new booths, kitchen, and baths.; Situated on 2 lots with alley access.; Option to convert to office space; seller will remove restaurant equipment.
