Two-Story Live-Work Office
For Sale
$1,520,000
1226 Flagman, Santa Fe, NM 87505
Two-story container-style building with flexible multi-unit setup, elevator, and a self-contained studio apartment for live-work use.
Property Size5,182 SF
Price / SF$293.32
Days on Market63
Property Features for 1226 Flagman
General Information
Standard status
Active
Size
5,182 SF
Property subtype
Commercial
Zoning
BCD-RED
Additional Details
Office Units
3
Amenities
Concrete Flooring
OnStreet
Parking Available
Building Details
Year Built
2010
Year Renovated
2025
Stories
2
Listing Agency:
REAL ESTATE ADVISORS, LLC
(505) 539-3200
Listed By:
TAI BIXBY · License #40315
Source:
Corcoran
Added: Jun 10
Changed: Aug 11
Last Checked: Aug 10 at 4:04AM
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 REAL ESTATE ADVISORS, LLC
Investment Insights
Based on property information with market context.
1226 Flagman is a 5,182± SF two-story commercial building built in 2010 in a steel intermodal container architecture and comprehensively expanded and renovated between 2022 and 2025. The property includes an interior elevator and three separate electric meters, supporting flexible configurations as one unit, two units, or three independent units. A self-contained studio apartment is included with dedicated HVAC for a true live-work program, and the building offers three full restrooms plus a ½ bath. Additional improvements include two cisterns and updated fire and security systems. The property is offered with a 15,417± SF parcel and ownership of all improvements.
The offering is within the Santa Fe Railyard, specifically the Baca District, and is zoned BCD-RED within the Railyard Master Plan Baca subdistrict. The ground lease commenced in February 2008 with an initial 50-year term and four 10-year extension options, which provides a potential lease horizon through 2098. Current ground rent and CAM payable to the Railyard is $3,538/month.
For tenants, owners, or operators seeking a flexible live-work or multi-unit office arrangement, the combination of elevator service, independently metered utilities, and a dedicated-HVAC studio apartment supports a range of occupancy strategies. The inclusion of multiple restrooms and modernized fire and security systems is also practical for office and mixed-use operations within the Railyard.
The offering is within the Santa Fe Railyard, specifically the Baca District, and is zoned BCD-RED within the Railyard Master Plan Baca subdistrict. The ground lease commenced in February 2008 with an initial 50-year term and four 10-year extension options, which provides a potential lease horizon through 2098. Current ground rent and CAM payable to the Railyard is $3,538/month.
For tenants, owners, or operators seeking a flexible live-work or multi-unit office arrangement, the combination of elevator service, independently metered utilities, and a dedicated-HVAC studio apartment supports a range of occupancy strategies. The inclusion of multiple restrooms and modernized fire and security systems is also practical for office and mixed-use operations within the Railyard.
Key Highlights
- 5,182± SF two‑story steel intermodal container‑style commercial building, built in 2010
- Expanded and renovated between 2022 and 2025, with an interior elevator
- Three separate electric meters allow flexible configuration as one, two, or three independent units
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
$71,356
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
4.69%
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%
$1,427,120
$1.4M
Cap Rate 7%
$1,019,371
$1.0M
Cap Rate 9%
$792,844
$792.8K
Market Conditions
NOI Build-Up for 5,182 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
$111.9K $21.60/SF
− Vacancy
−$16.8K −$3.24/SF
EGI
$95.1K $18.36/SF
− OpEx
−$23.8K −$4.59/SF
NOI
$71.4K $13.77/SF
Area
Santa Fe County, NM
Vacancy
15.00%
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%
$1,427,120
Cap Rate 7%
$1,019,371
Cap Rate 9%
$792,844
Alternative Uses
Best Use
Office B
$1.02M
$892.0K – $1.19M
NOI $71,356 @ 7.0% cap · market cap 4.69%
Second Best
Mixed Use
$688.8K
$602.7K – $803.6K
NOI $48,218 @ 7.0% cap · market cap 3.17%
Theoretical Best
Office A
$1.41M
$1.23M – $1.64M
NOI $98,499 @ 7.0% cap · market cap 6.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Location Intelligence
Trade Area within ½ mile
1,472
Businesses Nearby
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
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Frequently Asked Questions
What type of property is this?
Live-work space - Two-story container-style building with flexible multi-unit setup, elevator, and a self-contained studio apartment for live-work use.
Where is this live-work space located?
The property is located at 1226 Flagman Santa Fe, NM.
What is the asking price?
The asking price for this property is $1,520,000.
What are key features of this property?
This property features: 5,182± SF two‑story steel intermodal container‑style commercial building, built in 2010; Expanded and renovated between 2022 and 2025, with an interior elevator; Three separate electric meters allow flexible configuration as one, two, or three independent units
