Santa Fe Redevelopment
For Sale
$8,200,000
1625 Paseo de Peralta, Santa Fe, NM 87501
2.9-acre parcel near Railyard with redevelopment potential.
Property Size30,760 SF
Lot Size2.90 Acres
Price / SF$266.58
Days on Market270
Property Features for 1625 Paseo de Peralta
General Information
Standard status
Active
Size
30,760 SF
Lot size
2.90 Acres
Property subtype
Commercial
Building Details
Year Built
1931
Listing Agency:
REAL ESTATE ADVISORS, LLC
(505) 539-3200
Listed By:
TAI BIXBY · License #40315
(505) 577-3524
Source:
Corcoran
Added: Dec 8, 2025
Changed: Sep 4
Last Checked: Sep 4 at 6:41AM
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.
The Alvord School presents a significant redevelopment opportunity in Santa Fe's urban core. This approximately 2.9-acre infill parcel is located adjacent to the Santa Fe Railyard, a mixed-use cultural district. The existing building, totaling approximately 30,760 square feet, was originally constructed in 1931 and expanded through the 1970s. The Business Capital District (BCD) zoning designation offers flexibility for various uses, including hotel/hospitality, office/medical/dental, educational facilities, nonprofit or institutional headquarters, residential (multifamily, condominiums, live/work), retail, café, restaurant, service commercial, cultural uses (museums, galleries, performing arts), and religious and assembly use. Development is governed by height zones and Master Plan parameters. The Santa Fe Railyard is a nationally recognized arts, culture, and mixed-use district that includes the Santa Fe Farmers’ Market, Violet Crown Cinema, SITE Santa Fe, El Museo Cultural, Railyard Plaza + Public Green, REI, Rail Trail + Santa Fe Depot. The property offers transit-oriented development potential with walkability to transit, proximity to amenities, reduced parking requirements, and integration with a mixed-use environment. Extensive entitlements, including the Alvord Master Plan, archaeological clearance, and pre-reviewed infrastructure, reduce planning risk and development timelines. This property is a rare opportunity for hospitality, residential, mixed-use, institutional, medical, or educational redevelopment.
Key Highlights
- Prime 2.9‑acre infill parcel adjacent to the Santa Fe Railyard.
- Highly permissive Business Capital District (BCD) zoning allows for diverse redevelopment options.
- Extensive entitlements reduce planning risk and development timelines.
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
$286,218
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
3.49%
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%
$5,724,360
$5.7M
Cap Rate 7%
$4,088,829
$4.1M
Cap Rate 9%
$3,180,200
$3.2M
Market Conditions
NOI Build-Up for 30,760 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
$498.3K $16.20/SF
− Vacancy
−$40.4K −$1.31/SF
EGI
$457.9K $14.89/SF
− OpEx
−$171.7K −$5.58/SF
NOI
$286.2K $9.30/SF
Area
Santa Fe County, NM
Vacancy
8.10%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
37.50%
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%
$5,724,360
Cap Rate 7%
$4,088,829
Cap Rate 9%
$3,180,200
Alternative Uses
Best Use
Mixed Use
$4.09M
$3.58M – $4.77M
NOI $286,218 @ 7.0% cap · market cap 3.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.35M
$7.31M – $9.74M
NOI $584,686 @ 7.0% cap · market cap 7.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,965
Businesses Nearby
Explore this area
Business Placement
Demographics for 87501, NM
15,116
Population
10,480
Households
1.4
Avg Household Size
58
Median Age
61%
College-Educated
97%
High-School Grad
50.6 sq mi
ZIP Area
299
Density / Sq Mi
$81,229
Median Household Income
$52,851
Median Earnings
$1,516
Median Rent
$649,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 2.9-acre parcel near Railyard with redevelopment potential.
Where is this mixed-use property located?
The property is located at 1625 Paseo de Peralta Santa Fe, NM.
What is the asking price?
The asking price for this property is $8,200,000.
What are key features of this property?
This property features: Prime 2.9‑acre infill parcel adjacent to the Santa Fe Railyard.; Highly permissive Business Capital District (BCD) zoning allows for diverse redevelopment options.; Extensive entitlements reduce planning risk and development timelines.
