Live-Work Bungalow with
For Sale
$875,000
2863 NM 14 Highway, Madrid, NM 87010
SINGLE_FAMILY - Bungalow - Madrid, NM
Property Size1,800 SF
Lot Size0.16 Acres
Price / SF$486.11
Days on Market48
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
Heat Pump (Heating), Propane (Heating)
Cooling system
Heat Pump
Water front
1
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: Aug 6
Last Checked: Aug 12 at 8:06AM
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.
A remodeled 1931 bungalow designed for live-work use, offering a front gallery space with 14-foot ceilings, vaulted ceilings, and hardwood floors. The property also includes a separate apartment behind, described as spacious, with new lighting and windows, black slate kitchen floors and countertops, and original hardwood floors. A dedicated studio is set up for making art, and each space is served by a mini-split heat/AC system.
The front yard features a mature garden with drip irrigation, new redwood/steel fencing, and an area set up for selling sculpture. There are also two shaded side yards and an ample, fenced gravel backyard with steel garden beds. A walk-out deck with a roof provides shaded outdoor living and overlooks the backyard. The property includes a private paved driveway with parking for three cars plus two additional roadway spots, and a full basement for storage.
Located in Madrid’s commercial district on the Turquoise Trail, the front gallery has operated successfully for 25 years and the mixed-use zoning is described as allowing residential or commercial use.
The front yard features a mature garden with drip irrigation, new redwood/steel fencing, and an area set up for selling sculpture. There are also two shaded side yards and an ample, fenced gravel backyard with steel garden beds. A walk-out deck with a roof provides shaded outdoor living and overlooks the backyard. The property includes a private paved driveway with parking for three cars plus two additional roadway spots, and a full basement for storage.
Located in Madrid’s commercial district on the Turquoise Trail, the front gallery has operated successfully for 25 years and the mixed-use zoning is described as allowing residential or commercial use.
Key Highlights
- 1931 brick bungalow with mixed residential/commercial use (mixed use zoning allows residential or commercial use)
- Separate front gallery space with 14‑ft ceilings plus apartment behind; both have original hardwood floors and updated finishes
- Upgrades include new windows and doors, plus remodeled tile and plaster with beamed ceilings and wood/stone flooring
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
Apartment 5plus
$352.8K
$308.7K – $411.6K
NOI $24,697 @ 7.0% cap · market cap 2.82%
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
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
7
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 - Remodeled 1931 bungalow offers a front gallery with 14-foot ceilings and a separate rear apartment plus studio space.
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: 1931 brick bungalow with mixed residential/commercial use (mixed use zoning allows residential or commercial use); Separate front gallery space with 14‑ft ceilings plus apartment behind; both have original hardwood floors and updated finishes; Upgrades include new windows and doors, plus remodeled tile and plaster with beamed ceilings and wood/stone flooring
