Two-Story Metal Flex
For Sale
$1,600,000
1221 Flagman Way, Santa Fe, NM 87505
Built in 2009 with full HVAC and city utilities, the two-story layout supports an active fitness center and upper medical/martial uses.
Property Size5,984 SF
Price / SF$267.38
Days on Market46
Property Features for 1221 Flagman Way
General Information
Standard status
Active
Size
5,984 SF
Property subtype
Mixed Use
Additional Details
Utilities to Site
Yes
Amenities
3
Condo
Building Details
Year Built
2009
Stories
2
Listing Agency:
Sotheby's Int. RE/Grant
(505) 780-9500
Listed By:
Chris Webster · License #02342
(505) 780-9500
Source:
Xome
Added: Jun 26
Changed: Aug 8
Last Checked: Aug 9 at 4:57AM
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 Sotheby's Int. RE/Grant
Investment Insights
Based on property information with market context.
Set in the Baca Street Railyard, this two-story metal building (built in 2009) totals 5,986 square feet and is configured for real, active use. City utilities and a full HVAC system are in place. The building includes dedicated office space and multiple bathrooms, including two three-quarter baths each with a shower plus an additional 1/2 bath.
The ground floor operates as a functional fitness center and gym, while the upper floor houses a Jiu Jitsu studio and a chiropractic practice. Zoning allows for commercial and/or residential use. The property is currently income-producing, and the existing occupants would like to remain; however, no long-term leases encumber the property. Please note the leasehold structure: this is subject to a City ground lease with a significant term remaining and options to renew (not fee-simple). Baca Street is described as a walkable, design-forward corner of Santa Fe, connected by foot and bike along the Acequia Trail to the wider Railyard’s markets, museums, and restaurants.
The ground floor operates as a functional fitness center and gym, while the upper floor houses a Jiu Jitsu studio and a chiropractic practice. Zoning allows for commercial and/or residential use. The property is currently income-producing, and the existing occupants would like to remain; however, no long-term leases encumber the property. Please note the leasehold structure: this is subject to a City ground lease with a significant term remaining and options to renew (not fee-simple). Baca Street is described as a walkable, design-forward corner of Santa Fe, connected by foot and bike along the Acequia Trail to the wider Railyard’s markets, museums, and restaurants.
Key Highlights
- 5,986 SF two‑story metal building built in 2009, located in the Baca Street Railyard of Santa Fe
- City utilities and a full HVAC system are in place
- Ground floor operates as a fitness center/gym; upper floor includes a Jiu Jitsu studio and chiropractic practice
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
$82,787
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
5.17%
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%
$1,655,740
$1.7M
Cap Rate 7%
$1,182,671
$1.2M
Cap Rate 9%
$919,856
$919.9K
Market Conditions
NOI Build-Up for 5,984 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
$150.8K $25.20/SF
− Vacancy
−$12.8K −$2.14/SF
EGI
$138.0K $23.06/SF
− OpEx
−$55.2K −$9.22/SF
NOI
$82.8K $13.83/SF
Area
Santa Fe County, NM
Vacancy
8.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$1,655,740
Cap Rate 7%
$1,182,671
Cap Rate 9%
$919,856
Alternative Uses
Best Use
Healthcare Medical
$1.18M
$1.03M – $1.38M
NOI $82,787 @ 7.0% cap · market cap 5.17%
Second Best
Office B
$1.18M
$1.03M – $1.37M
NOI $82,400 @ 7.0% cap · market cap 5.15%
Theoretical Best
Office A
$1.62M
$1.42M – $1.90M
NOI $113,744 @ 7.0% cap · market cap 7.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,034
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 87505, NM
32,078
Population
18,733
Households
1.7
Avg Household Size
52
Median Age
54%
College-Educated
94%
High-School Grad
65.1 sq mi
ZIP Area
493
Density / Sq Mi
$75,912
Median Household Income
$41,169
Median Earnings
$1,348
Median Rent
$484,100
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.
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Frequently Asked Questions
What type of property is this?
Fitness center & gym - Built in 2009 with full HVAC and city utilities, the two-story layout supports an active fitness center and upper medical/martial uses.
Where is this fitness center & gym located?
The property is located at 1221 Flagman Way Santa Fe, NM.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 5,986 SF two‑story metal building built in 2009, located in the Baca Street Railyard of Santa Fe; City utilities and a full HVAC system are in place; Ground floor operates as a fitness center/gym; upper floor includes a Jiu Jitsu studio and chiropractic practice
