Manufacturing Property with
For Sale
$279,900
311 Don Diego Street SE, Los Lunas, NM 87031
CommercialSale, Los Lunas, NM
Property Size1,860 SF
Lot Size0.24 Acres
Price / SF$150.48
Days on Market255
Property Features for 311 Don Diego Street SE
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
C-1
Parking
6
Parking features
Guest
Fencing
Fenced
Directions
From I-25 and Main St in Los Lunas, go east to Don Diego St., then go south to Property.
Subdivision
700 - Los Lunas
Standard status
Active
APN
1009038476227000000
Lot size
0.24 Acres
Taxes and HOA fees
Tax Annual Amount
1237
Building Details
Floors in Building
1
Building materials
MetalFrame, MetalSiding
Listing Agency:
Gerald Chavez Realty Inc
(505) 865-4671
Listed By:
Frank X Villalobos · License #38582
(505) 720-4096
Added: Dec 10, 2025
Changed: Aug 19
Last Checked: Aug 22 at 7:06PM
MLS# 1095718
Copyright © 2026 Southwest MLS. 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 manufacturing property includes a 31' x 60' metal-frame shop with metal siding, an office, and a bathroom. The building previously operated as a machine and welding shop, providing an established industrial configuration for commercial use. All city utilities serve the property, and the site is fenced with guest parking available.
The property is located at 311 Don Diego Street SE in Los Lunas, New Mexico, within postal code 87031. The 0.24-acre parcel carries C-1 zoning and is situated in Valencia County. Its combination of shop space, support areas, utility service, and existing site improvements creates a practical small-scale manufacturing property.
The property is located at 311 Don Diego Street SE in Los Lunas, New Mexico, within postal code 87031. The 0.24-acre parcel carries C-1 zoning and is situated in Valencia County. Its combination of shop space, support areas, utility service, and existing site improvements creates a practical small-scale manufacturing property.
Key Highlights
- 31' x 60' metal‑frame shop with metal siding
- Office and bathroom included within the building
- All city utilities serve the property
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
Property Profile
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
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 - Fenced, utility-served facility with dedicated office and bathroom improvements.
Where is this manufacturing property located?
The property is located at 311 Don Diego Street 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: 31' x 60' metal‑frame shop with metal siding; Office and bathroom included within the building; All city utilities serve the property
