Remodeled Live-Work
For Sale
$875,000
2863 NM 14 Highway, Madrid, NM 87010
Residential, Madrid, NM
Property Size1,800 SF
Lot Size0.16 Acres
Price / SF$486.11
Days on Market71
Property Features for 2863 NM 14 Highway
General Information
Property type
Residential
Property subtype
Retail
Zoning
Historic
Zoning description
TC- Traditional Commmunity
Rooms
Basement
Interior features
BeamedCeilings, NoInteriorSteps
Subdivision
Madrid Townsite
Elementary school
Turquoise Trail
Middle school
Milagro
High school
Santa Fe
Directions
From Santa Fe take NM 14/ Turquoise Trail 28 miles south to Madrid. 2863 NM 14 is on the right hand side Range West Gallery.
Standard status
Active
APN
076003984
Size
1,800 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Description
T14N R 7E S25 IMPROVEMENT 17
Legal Description
T14N R 7E S25 IMPROVEMENT 17
Utilities
Utilities
Propane
Sewer type
Septic Tank
Heating system
Propane (Heating), Heat Pump (Heating)
Cooling system
Heat Pump
Water front
1
Amenities
mature garden and drip irrigation
new redwood/steel fencing
walk out deck with a roof
shaded side yards
mini-split heat/AC system
full basement for storage
Building Details
Year built
1931
Flooring type
Wood, Stone
Building materials
Brick, Concrete
Roof type
Metal
Architectural style
Bungalow
Listing Agency:
Keller Williams Realty
(505) 983-5151
Listed By:
Rachel Heath · License #54680
(505) 660-2253
Added: Jun 26
Changed: Sep 2
Last Checked: Sep 4 at 1:06AM
MLS# 202602544
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 1931 bungalow provides 1,800 square feet on 0.16 acres with a flexible live-work configuration. The remodeled property includes a front gallery with 14-foot ceilings, a separate apartment, and an art studio with strong natural light. Hardwood and black slate flooring, exposed beams, updated windows and doors, new lighting, and individual mini-split heat and AC systems serve the interior spaces. A full basement provides storage, while the apartment includes a kitchen and a covered walk-out deck.
The property also features a fenced gravel backyard with steel garden beds, mature landscaping with drip irrigation, two shaded side yards, and a paved private driveway with parking for three cars plus two additional roadway spaces. Historic mixed-use zoning supports residential or commercial use. The property is served by propane and a septic tank and includes a metal roof.
The property also features a fenced gravel backyard with steel garden beds, mature landscaping with drip irrigation, two shaded side yards, and a paved private driveway with parking for three cars plus two additional roadway spaces. Historic mixed-use zoning supports residential or commercial use. The property is served by propane and a septic tank and includes a metal roof.
Key Highlights
- 1,800‑square‑foot live‑work bungalow on a 0.16‑acre lot
- 1931 construction with remodeled interior finishes and updated windows, doors, and lighting
- Front gallery offers 14‑foot ceilings and separate apartment and studio spaces
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
$24,786
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
2.83%
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%
$495,720
$495.7K
Cap Rate 7%
$354,086
$354.1K
Cap Rate 9%
$275,400
$275.4K
Market Conditions
NOI Build-Up for 1,800 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
$38.9K $21.60/SF
− Vacancy
−$5.8K −$3.24/SF
EGI
$33.0K $18.36/SF
− OpEx
−$8.3K −$4.59/SF
NOI
$24.8K $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%
$495,720
Cap Rate 7%
$354,086
Cap Rate 9%
$275,400
Alternative Uses
Best Use
Office B
$354.1K
$309.8K – $413.1K
NOI $24,786 @ 7.0% cap · market cap 2.83%
Second Best
Retail
$326.1K
$285.3K – $380.5K
NOI $22,827 @ 7.0% cap · market cap 2.61%
Theoretical Best
Office A
$488.8K
$427.7K – $570.2K
NOI $34,214 @ 7.0% cap · market cap 3.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14 ft
Clear height
Location Intelligence
Trade Area within ½ mile
108
Businesses Nearby
Explore this area
Business Placement
Demographics for 87010, NM
1,165
Population
898
Households
1.3
Avg Household Size
58
Median Age
63%
College-Educated
100%
High-School Grad
166.7 sq mi
ZIP Area
7
Density / Sq Mi
$45,490
Median Household Income
$21,840
Median Earnings
$1,375
Median Rent
$450,000
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?
Live-work space - Mixed-use property combining a gallery, apartment, and art studio with outdoor areas and dedicated parking.
Where is this live-work space located?
The property is located at 2863 NM 14 Highway Madrid, NM.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 1,800‑square‑foot live‑work bungalow on a 0.16‑acre lot; 1931 construction with remodeled interior finishes and updated windows, doors, and lighting; Front gallery offers 14‑foot ceilings and separate apartment and studio spaces
