Updated Triplex with Owner’s
For Sale
$625,000
2905 Palo Verde Dr, Albuquerque, NM 87112
Three-unit property with refreshed interiors, fireplaces, and an owner’s residence with attached garage.
Property Size3,400 SF
Price / SF$183.82
Days on Market23
Property Features for 2905 Palo Verde Dr
General Information
Standard status
Active
Size
3,400 SF
Property subtype
Residential Income
Additional Details
Multifamily Units
3
Amenities
fireplace
Building Details
Year Built
1978
Listing Agency:
Coldwell Banker Legacy
(505) 263-2173
Listed By:
Sandi D. Pressley · License #14871
Source:
Myabqhomesearch
Added: Aug 7
Changed: Aug 29
Last Checked: Aug 25 at 7:14AM
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 Coldwell Banker Legacy
Investment Insights
Based on property information with market context.
Built in 1978, this 3,400-square-foot triplex includes three residential units and a larger owner’s unit with three bedrooms, two baths, and a 2-car garage. Each unit includes a fireplace, while interior improvements include updated flooring, paint, and refinished cabinets completed in 2026. The property also has a new TPO roof installed in 2024.
Located at 2905 Palo Verde Dr in Albuquerque’s NE Heights, the property offers city and mountain views. All three units have a rental history, and the building has been maintained with ongoing interior updates.
Located at 2905 Palo Verde Dr in Albuquerque’s NE Heights, the property offers city and mountain views. All three units have a rental history, and the building has been maintained with ongoing interior updates.
Key Highlights
- Three‑unit triplex with 3,400 square feet
- Owner’s unit includes three bedrooms, two baths, and a 2‑car garage
- Each unit features a fireplace
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
$31,038
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
4.97%
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%
$620,760
$620.8K
Cap Rate 7%
$443,400
$443.4K
Cap Rate 9%
$344,867
$344.9K
Market Conditions
NOI Build-Up for 3,400 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
$46.9K $13.80/SF
− Vacancy
−$2.6K −$0.76/SF
EGI
$44.3K $13.04/SF
− OpEx
−$13.3K −$3.91/SF
NOI
$31.0K $9.13/SF
Area
Albuquerque, NM
Vacancy
5.50%
Lease Rate
$13.80 /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%
$620,760
Cap Rate 7%
$443,400
Cap Rate 9%
$344,867
Alternative Uses
Best Use
Multifamily LT 5
$443.4K
$388.0K – $517.3K
NOI $31,038 @ 7.0% cap · market cap 4.97%
Second Best
Apartment 5plus
$410.3K
$359.0K – $478.7K
NOI $28,719 @ 7.0% cap · market cap 4.60%
Theoretical Best
Office A
$822.5K
$719.7K – $959.6K
NOI $57,577 @ 7.0% cap · market cap 9.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
262
Businesses Nearby
Explore this area
Business Placement
Demographics for 87112, NM
42,487
Population
20,083
Households
2.1
Avg Household Size
42
Median Age
38%
College-Educated
94%
High-School Grad
8.1 sq mi
ZIP Area
5,245
Density / Sq Mi
$69,610
Median Household Income
$41,427
Median Earnings
$1,056
Median Rent
$254,400
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Three-unit property with refreshed interiors, fireplaces, and an owner’s residence with attached garage.
Where is this triplex located?
The property is located at 2905 Palo Verde Dr Albuquerque, NM.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Three‑unit triplex with 3,400 square feet; Owner’s unit includes three bedrooms, two baths, and a 2‑car garage; Each unit features a fireplace
