Two-Story Flex
For Sale
$1,520,000
1226 Flagman Way, Santa Fe, NM 87505
CommercialSale, Santa Fe, NM
Property Size5,182 SF
Lot Size0.35 Acres
Price / SF$293.32
Days on Market93
Property Features for 1226 Flagman Way
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
BCD
Parking
9
Parking features
On Street
Directions
Cerrillos to Baca Street to Flagman way
Standard status
Active
APN
910021272
Size
5,182 SF
Lot size
0.35 Acres
Taxes and HOA fees
Tax Description
Parcel LL in the Baca Railard.
Legal Description
Parcel LL in the Baca Railard.
Utilities
Sewer type
Public Sewer
Water source
Public
Amenities
elevator
studio apartment
dedicated HVAC
cisterns
updated fire system
updated security system
Building Details
Year built
2010
Flooring type
Concrete
Building materials
MetalSiding, Concrete
Listing Agency:
Real Estate Advisors, LLC
(505) 539-3200
Listed By:
Tai Bixby · License #40315
(505) 577-3524
Added: Jun 9
Changed: Sep 6
Last Checked: Sep 9 at 5:06AM
MLS# 202602555
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 two-story flex property comprises approximately 5,182 square feet within a 15,417-square-foot parcel. Steel intermodal container construction is paired with concrete flooring, an interior elevator, three full restrooms, and an additional three-quarter bath. Three separate electric meters support operation as one, two, or three independent units, while a self-contained studio apartment with dedicated HVAC adds live-work functionality. The building was completed in 2010 and underwent substantial expansion and renovation from 2022 through 2025. Public water and sewer serve the property, with on-street parking and two cisterns also included.
The property is located in Santa Fe’s Railyard area, within the Baca District, and is within walking distance of SITE Santa Fe, the Santa Fe Farmers Market, Violet Crown Cinema, Second Street Brewery, El Museo Cultural, and the New Mexico Rail Runner station. The offering includes the leasehold interest in the parcel and ownership of the improvements. The ground lease began in February 2008 with an initial 50-year term and four 10-year extension options, creating a potential lease horizon through 2098.
The property is located in Santa Fe’s Railyard area, within the Baca District, and is within walking distance of SITE Santa Fe, the Santa Fe Farmers Market, Violet Crown Cinema, Second Street Brewery, El Museo Cultural, and the New Mexico Rail Runner station. The offering includes the leasehold interest in the parcel and ownership of the improvements. The ground lease began in February 2008 with an initial 50-year term and four 10-year extension options, creating a potential lease horizon through 2098.
Key Highlights
- 5,182+/- SF two‑story commercial building on a 15,417+/- SF parcel
- Steel intermodal container construction, originally built in 2010
- Expanded and renovated between 2022 and 2025
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
Flex RnD
$779.5K
$682.1K – $909.4K
NOI $54,566 @ 7.0% cap · market cap 3.59%
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
Location Intelligence
Trade Area within ½ mile
1,034
Businesses Nearby
Under-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.
Frequently Asked Questions
What type of property is this?
Flex space - Container-based commercial property with adaptable unit configuration, a studio apartment, elevator, and updated building systems.
Where is this flex space located?
The property is located at 1226 Flagman Way 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 commercial building on a 15,417+/- SF parcel; Steel intermodal container construction, originally built in 2010; Expanded and renovated between 2022 and 2025
