Mixed-Use Property with Two
For Sale
Contact for pricing
3881 MORNINGSTAR Drive, Farmington, NM 87401
The commercially and industrially zoned property includes a dome, offices, a kitchen, and an on-site well.
Property Size7,096 SF
Lot Size10.00 Acres
Price / SF$76.10
Days on Market182
Property Features for 3881 MORNINGSTAR Drive
General Information
Standard status
Active
Size
7,096 SF
Lot size
10.00 Acres
Property subtype
Industrial, Mixed Use
Zoning
commercial/industrial
Amenities
kitchen
Building Details
Buildings
2
Abandoned
No
Listing Agency:
RE/MAX of Farmington
(505) 860-2887
Listed By:
Elizabeth Tafoya · License #17823
Source:
Crexi
Added: Mar 1
Changed: Aug 30
Last Checked: Mar 26 at 12:34AM
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 RE/MAX of Farmington
Investment Insights
Based on property information with market context.
This mixed-use property encompasses 10 acres with commercial/industrial zoning and two separate buildings. One is a dome structure, while the other was previously used as a church and contains numerous offices and a kitchen. The property also includes a well.
One of the buildings is tenant occupied and configured with 4 BR's and 1 bath. The existing improvements provide a varied physical layout, combining a distinctive dome building with an office-oriented structure and residential-style accommodations.
One of the buildings is tenant occupied and configured with 4 BR's and 1 bath. The existing improvements provide a varied physical layout, combining a distinctive dome building with an office-oriented structure and residential-style accommodations.
Key Highlights
- 10 acres zoned commercial/industrial
- Two separate buildings, including a dome structure
- Second building contains numerous offices and a kitchen
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
$38,891
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
7.20%
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%
$777,820
$777.8K
Cap Rate 7%
$555,586
$555.6K
Cap Rate 9%
$432,122
$432.1K
Market Conditions
NOI Build-Up for 7,096 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
$67.3K $9.48/SF
− Vacancy
−$5.0K −$0.71/SF
EGI
$62.2K $8.77/SF
− OpEx
−$23.3K −$3.29/SF
NOI
$38.9K $5.48/SF
Area
San Juan County, NM
Vacancy
7.50%
Lease Rate
$9.48 /SF/Yr
Expense Ratio
37.50%
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%
$777,820
Cap Rate 7%
$555,586
Cap Rate 9%
$432,122
Alternative Uses
Best Use
Office B
$905.0K
$791.9K – $1.06M
NOI $63,353 @ 7.0% cap · market cap 11.73%
Second Best
Mixed Use
$555.6K
$486.1K – $648.2K
NOI $38,891 @ 7.0% cap · market cap 7.20%
Theoretical Best
Office A
$1.47M
$1.28M – $1.71M
NOI $102,757 @ 7.0% cap · market cap 19.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
103
Businesses Nearby
Explore this area
Business Placement
Demographics for 87401, NM
44,724
Population
17,611
Households
2.5
Avg Household Size
34
Median Age
19%
College-Educated
88%
High-School Grad
132.8 sq mi
ZIP Area
337
Density / Sq Mi
$56,358
Median Household Income
$31,362
Median Earnings
$983
Median Rent
$202,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - The commercially and industrially zoned property includes a dome, offices, a kitchen, and an on-site well.
Where is this mixed-use property located?
The property is located at 3881 MORNINGSTAR Drive Farmington, NM.
What is the asking price?
The asking price for this property is $540,000.
What are key features of this property?
This property features: 10 acres zoned commercial/industrial; Two separate buildings, including a dome structure; Second building contains numerous offices and a kitchen
