Listing Agency: Steinborn/TCN Commercial Real Estate Show Phone

Listed By: Kary Bulsterbaum · License #43302 Show Phone

Source: Moodyscre

Added: Mar 25 Changed: Aug 17 Last Checked: Aug 14 at 7:56AM

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Investment Insights

Based on property information with market context.

This mixed-use property offers a diversified in-place tenant mix with two primary lower-floor retail tenants and four upper-floor office suites. There is also an existing unit currently offered for VRBO purposes, which can be used as an additional office.

The building is positioned at a main entry point to Mesilla Plaza and directly across the street from the La Posta main entrance. Public remarks indicate signage opportunities and flexibility for retail operation and other uses.

An adjacent, separate facility is also available for sale and is described as generating $44,000 plus in gross income, with future increases built into the current tenant’s lease. The current tenant at this location is also described as willing to renew under a long-term lease arrangement.

Key Highlights

• Mesilla Plaza property at a main entry point with signage opportunities and an adjacent separate facility also available
• Diversified tenancy: two primary lower‑floor retail tenants, four upper‑floor offices, and an additional unit currently used for VRBO
• VRBO unit can also be used as an additional office

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

$43,804

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

4.87%

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%

$876,080 $876.1K

Cap Rate 7%

$625,771 $625.8K

Cap Rate 9%

$486,711 $486.7K

Market Conditions

NOI Build-Up for 4,950 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

$68.3K $13.80/SF

− Vacancy

−$9.9K −$2.00/SF

EGI

$58.4K $11.80/SF

− OpEx

−$14.6K −$2.95/SF

NOI

$43.8K $8.85/SF

Area

Dona Ana County, NM

Vacancy

14.50%

Lease Rate

$13.80 /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%

$876,080

Cap Rate 7%

$625,771

Cap Rate 9%

$486,711

Alternative Uses

Best Use

Office B

$625.8K

$547.6K – $730.1K (±1% cap)

NOI $43,804 @ 7.0% cap · market cap 4.87%

Second Best

Retail

$573.8K

$502.1K – $669.4K (±1% cap)

NOI $40,166 @ 7.0% cap · market cap 4.46%

Theoretical Best

Office A

$866.2K

$758.0K – $1.01M (±1% cap)

NOI $60,636 @ 7.0% cap · market cap 6.74%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

The Cannabis Tropical Powered ... (Bike/Boat/Book/etc) Store Julienne Jewelry (Billy ... (Bike/Boat/Book/etc) Store

Suggested Use

Top Pick Building Supply Big Box & Wholesale Store Real Estate Agency Auto Parts Store Kitchen & Bath Showroom Law Firm

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

267

Businesses Nearby

Explore this area Business Placement

Demographics for 88046, NM

718

Population

370

Households

1.9

Avg Household Size

53

Median Age

42%

College-Educated

88%

High-School Grad

0.6 sq mi

ZIP Area

1,197

Density / Sq Mi

$66,300

Median Household Income

$253,000

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this retail space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Retail space - Property on Mesilla Plaza includes lower retail tenants, upper offices, and a unit currently used for VRBO.

Where is this retail space located?

The property is located at 2060 Calle De Parian Mesilla, NM.

What is the asking price?

The asking price for this property is $900,000.

What are key features of this property?

This property features: Mesilla Plaza property at a main entry point with signage opportunities and an adjacent separate facility also available; Diversified tenancy: two primary lower‑floor retail tenants, four upper‑floor offices, and an additional unit currently used for VRBO; VRBO unit can also be used as an additional office