Mixed-Use Commercial
For Sale
$2,900,000
2050 KNUDSEN Avenue, Farmington, NM 87401
COMMERCIAL - Farmington, NM
Property Size16,498 SF
Lot Size1.24 Acres
Price / SF$175.78
Days on Market307
Property Features for 2050 KNUDSEN Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Mixed Use
Security features
Security System
Subdivision
Valley View Center Hub
Directions
From 20th turn right on Knudsen Ave - Behind Grease Monkey
Standard status
Active
Size
16,498 SF
Lot size
1.24 Acres
Taxes and HOA fees
Tax Year
2026
Tax Description
VALLEY VIEW CENTER SUBDIVISION REPLAT E LOT 1A-A-E2
Legal Description
VALLEY VIEW CENTER SUBDIVISION REPLAT E LOT 1A-A-E2
Utilities
Cooling system
Central Air
Amenities
conference/event venue
Building Details
Floors in Building
2
Listing Agency:
San Juan Realty
(505) 327-4837
Listed By:
Richard Buffington · License #REC20230425
(505) 327-4837
Added: Oct 10, 2025
Changed: Aug 4
Last Checked: Aug 12 at 11:06AM
MLS# 25-1338
Copyright © 2026 San Juan County Board of Realtors. 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 mixed-use commercial property contains 8 units, including 6 completed spaces. Two upper-level live/work suites offer two bedrooms and two bathrooms apiece, with custom cabinetry and open layouts. The suites measure 1,516 square feet and 1,528.8 square feet. Additional main-level units remain unfinished for customized interior build-outs. A 3,032-square-foot conference and event venue includes two full restrooms, storage, and a finished kitchen.
Fresenius Kidney Care Dialysis occupies 7,338 square feet under a long-term lease that began three years ago. The initial term runs for 10 years and includes 2% annual rent increases, ending in 2032, with a first right of automatic renewal for an additional 15 years. The property occupies 1.24 acres at 2050 Knudsen Avenue in Farmington, New Mexico, and has central air conditioning.
Fresenius Kidney Care Dialysis occupies 7,338 square feet under a long-term lease that began three years ago. The initial term runs for 10 years and includes 2% annual rent increases, ending in 2032, with a first right of automatic renewal for an additional 15 years. The property occupies 1.24 acres at 2050 Knudsen Avenue in Farmington, New Mexico, and has central air conditioning.
Key Highlights
- 8 total units, with 6 fully finished
- Two live/work suites measure 1,516 square feet and 1,528.8 square feet
- Fresenius Kidney Care Dialysis occupies 7,338 square feet
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
$163,128
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
5.63%
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%
$3,262,560
$3.3M
Cap Rate 7%
$2,330,400
$2.3M
Cap Rate 9%
$1,812,533
$1.8M
Market Conditions
NOI Build-Up for 16,498 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
$243.5K $14.76/SF
− Vacancy
−$10.5K −$0.63/SF
EGI
$233.0K $14.13/SF
− OpEx
−$69.9K −$4.24/SF
NOI
$163.1K $9.89/SF
Area
San Juan County, NM
Vacancy
4.30%
Lease Rate
$14.76 /SF/Yr
Expense Ratio
30.00%
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%
$3,262,560
Cap Rate 7%
$2,330,400
Cap Rate 9%
$1,812,533
Alternative Uses
Best Use
Retail
$2.33M
$2.04M – $2.72M
NOI $163,128 @ 7.0% cap · market cap 5.63%
Second Best
Office B
$2.10M
$1.84M – $2.45M
NOI $147,294 @ 7.0% cap · market cap 5.08%
Theoretical Best
Office A
$3.41M
$2.99M – $3.98M
NOI $238,908 @ 7.0% cap · market cap 8.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
642
Businesses Nearby
Explore this area
Business Placement
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Eight-unit property includes live/work suites, event facilities, and unfinished bays for tenant build-outs.
Where is this mixed-use property located?
The property is located at 2050 KNUDSEN Avenue Farmington, NM.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: 8 total units, with 6 fully finished; Two live/work suites measure 1,516 square feet and 1,528.8 square feet; Fresenius Kidney Care Dialysis occupies 7,338 square feet
