Mixed-Use Downtown
For Sale
$1,400,000
Pending
223 E Palace #A B C, Santa Fe, NM 87501
Downtown building with three separate units and seven on-site parking spaces, built in 1910 with later additions.
Property Size3,072 SF
Days on Market47
Property Features for 223 E Palace #A B C
General Information
Standard status
Pending
Size
3,072 SF
Total Parking Spaces
7
Property subtype
Commercial
Amenities
Central air
Carpet Flooring
Flat Roof
Parking Available
Refrigerated Cooling
Tar Gravel Roof
Tile Flooring
Wood Flooring
Building Details
Year Built
1910
Listing Agency:
BARKER REALTY, LLC
(505) 982-9836
Listed By:
STEFAN LARK · License #48623
Source:
Corcoran
Added: Jul 12
Changed: Aug 25
Last Checked: Aug 26 at 5:17AM
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 BARKER REALTY, LLC
Investment Insights
Based on property information with market context.
This downtown commercial building totals approximately 3,072 square feet and is currently configured as three separate units: one retail unit, one office unit, and one residence. The original structure was built in 1910, with an addition completed in the mid-1970s. Updates include a new 200-amp electric system, new HVAC in Unit 1, and heat/cool split systems in Unit B.
The property offers excellent street frontage and a porch facing Palace Ave, with seven parking spaces on site. It is about 1 1/2 blocks to the Plaza.
Units include distinct spaces for retail and office use, along with the separate residence, supporting a mixed-use setup within a single building.
The property offers excellent street frontage and a porch facing Palace Ave, with seven parking spaces on site. It is about 1 1/2 blocks to the Plaza.
Units include distinct spaces for retail and office use, along with the separate residence, supporting a mixed-use setup within a single building.
Key Highlights
- Downtown commercial building totaling approx. 3,072 SF with three separate units: retail, office, and residence
- 7 on‑site parking spaces for tenants and visitors
- Built in 1910 with an addition added in the mid 1970s
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
$42,301
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
3.02%
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%
$846,020
$846.0K
Cap Rate 7%
$604,300
$604.3K
Cap Rate 9%
$470,011
$470.0K
Market Conditions
NOI Build-Up for 3,072 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
$66.4K $21.60/SF
− Vacancy
−$10.0K −$3.24/SF
EGI
$56.4K $18.36/SF
− OpEx
−$14.1K −$4.59/SF
NOI
$42.3K $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%
$846,020
Cap Rate 7%
$604,300
Cap Rate 9%
$470,011
Alternative Uses
Best Use
Office B
$604.3K
$528.8K – $705.0K
NOI $42,301 @ 7.0% cap · market cap 3.02%
Second Best
Retail
$556.6K
$487.0K – $649.3K
NOI $38,959 @ 7.0% cap · market cap 2.78%
Theoretical Best
Office A
$834.2K
$729.9K – $973.2K
NOI $58,393 @ 7.0% cap · market cap 4.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
4
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
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Downtown building with three separate units and seven on-site parking spaces, built in 1910 with later additions.
Where is this storefront property located?
The property is located at 223 E Palace #A B C Santa Fe, NM.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Downtown commercial building totaling approx. 3,072 SF with three separate units: retail, office, and residence; 7 on‑site parking spaces for tenants and visitors; Built in 1910 with an addition added in the mid 1970s
