Manufacturing Shop with
New
For Sale
$279,900
311 Don Diego St SE, Los Lunas, NM 87031
Metal shop with office, bathroom, city utilities, and C-1 zoning in Los Lunas.
Property Size1,860 SF
Price / SF$150.48
Days on Market3
Property Features for 311 Don Diego St SE
General Information
Standard status
Active
Size
1,860 SF
Zoning
C-1
Additional Details
Utilities to Site
Yes
Building Details
Construction
metal
Listing Agency:
Gerald Chavez Realty Inc
Listed By:
Frank X Villalobos · License #38582
(505) 865-4671
Source:
Thesouthwestlife
Added: Sep 10
Last Checked: Sep 11 at 3:15PM
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 Gerald Chavez Realty Inc
Investment Insights
Based on property information with market context.
This manufacturing property includes an approximately 1,860-square-foot metal shop measuring 31 feet by 60 feet, along with an office and bathroom. The building previously operated as a machine and welding shop, providing a documented industrial-use history.
Located at 311 Don Diego St SE in Los Lunas, the property has access to city utilities and is zoned C-1. The existing shop configuration and dedicated office area support continued commercial or production-oriented use, subject to applicable zoning requirements.
Located at 311 Don Diego St SE in Los Lunas, the property has access to city utilities and is zoned C-1. The existing shop configuration and dedicated office area support continued commercial or production-oriented use, subject to applicable zoning requirements.
Key Highlights
- 1,860‑square‑foot metal shop
- 31‑foot by 60‑foot building footprint
- Includes office and bathroom
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
$16,365
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
5.85%
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%
$327,300
$327.3K
Cap Rate 7%
$233,786
$233.8K
Cap Rate 9%
$181,833
$181.8K
Market Conditions
NOI Build-Up for 1,860 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
$26.8K $14.40/SF
− Vacancy
−$1.6K −$0.86/SF
EGI
$25.2K $13.54/SF
− OpEx
−$8.8K −$4.74/SF
NOI
$16.4K $8.80/SF
Area
Valencia County, NM
Vacancy
6.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
35.00%
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%
$327,300
Cap Rate 7%
$233,786
Cap Rate 9%
$181,833
Alternative Uses
Best Use
Flex RnD
$233.8K
$204.6K – $272.8K
NOI $16,365 @ 7.0% cap · market cap 5.85%
Second Best
Industrial
$159.0K
$139.2K – $185.5K
NOI $11,132 @ 7.0% cap · market cap 3.98%
Theoretical Best
Office A
$384.6K
$336.5K – $448.7K
NOI $26,922 @ 7.0% cap · market cap 9.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
557
Businesses Nearby
Explore this area
Business Placement
Demographics for 87031, NM
45,208
Population
16,917
Households
2.7
Avg Household Size
37
Median Age
21%
College-Educated
85%
High-School Grad
255.5 sq mi
ZIP Area
177
Density / Sq Mi
$61,947
Median Household Income
$34,167
Median Earnings
$1,083
Median Rent
$206,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial 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?
Manufacturing property - Metal shop with office, bathroom, city utilities, and C-1 zoning in Los Lunas.
Where is this manufacturing property located?
The property is located at 311 Don Diego St SE Los Lunas, NM.
What is the asking price?
The asking price for this property is $279,900.
What are key features of this property?
This property features: 1,860‑square‑foot metal shop; 31‑foot by 60‑foot building footprint; Includes office and bathroom
