Redevelopment Opportunity in Santa
For Sale
$995,000
400 Brunn School, Santa Fe, NM 87505
2.16-acre property with redevelopment and income potential.
Property Size3,060 SF
Lot Size2.16 Acres
Price / SF$325.16
Days on Market82
Property Features for 400 Brunn School
General Information
Standard status
Active
Size
3,060 SF
Lot size
2.16 Acres
Property subtype
Commercial
Amenities
Metal Roof
Building Details
Year Built
1980
Listing Agency:
KELLER WILLIAMS REALTY
(505) 983-5151
Listed By:
TARA P. WOODRUFF · License #51489
Source:
Corcoran
Added: May 21
Changed: Aug 8
Last Checked: Jul 15 at 9:11PM
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 KELLER WILLIAMS REALTY
Investment Insights
Based on property information with market context.
Located at 400 Brunn School Rd, this 2.16-acre property presents a redevelopment and income-producing opportunity. The site has operated as a school for over 40 years. The main building provides approximately 3,060 sq ft of space, complemented by a detached 1,500 sq ft casita and studio. The property's zoning now permits up to 8 residential units, including 2 designated as affordable housing. This allows for multi-unit development in the Santa Fe market. Potential uses include workforce housing, long-term rental units, short-term rental concepts (subject to city approval), co-housing, creative campus-style living, or a mixed-use residential compound. The existing improvements may reduce initial development costs while allowing for strategic repositioning to maximize returns. The acreage supports site planning, parking solutions, outdoor amenities, and expansion concepts. It is suited for developers, 1031 exchange buyers, or investors seeking diversification through multi-stream residential income.
Key Highlights
- Redevelopment opportunity: Zoning allows up to 8 residential units, including 2 affordable housing units.
- Existing structures offer immediate income potential**: 3,060 sq ft main building plus 1,500 sq ft casita/studio reduce initial development costs.
- Spacious 2.16‑acre lot** provides ample space for site planning, parking, outdoor amenities, and expansion.
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
$41,985
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
4.22%
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%
$839,700
$839.7K
Cap Rate 7%
$599,786
$599.8K
Cap Rate 9%
$466,500
$466.5K
Market Conditions
NOI Build-Up for 3,060 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
$79.7K $26.04/SF
− Vacancy
−$3.3K −$1.09/SF
EGI
$76.3K $24.95/SF
− OpEx
−$34.4K −$11.23/SF
NOI
$42.0K $13.72/SF
Area
Santa Fe County, NM
Vacancy
4.20%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
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%
$839,700
Cap Rate 7%
$599,786
Cap Rate 9%
$466,500
Alternative Uses
Best Use
Apartment 5plus
$599.8K
$524.8K – $699.8K
NOI $41,985 @ 7.0% cap · market cap 4.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$830.9K
$727.1K – $969.4K
NOI $58,164 @ 7.0% cap · market cap 5.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,171
Businesses Nearby
Explore this area
Business Placement
Demographics for 87505, NM
32,078
Population
18,733
Households
1.7
Avg Household Size
52
Median Age
54%
College-Educated
94%
High-School Grad
65.1 sq mi
ZIP Area
493
Density / Sq Mi
$75,912
Median Household Income
$41,169
Median Earnings
$1,348
Median Rent
$484,100
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?
School - 2.16-acre property with redevelopment and income potential.
Where is this school located?
The property is located at 400 Brunn School Santa Fe, NM.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: Redevelopment opportunity: Zoning allows up to 8 residential units, including 2 affordable housing units.; Existing structures offer immediate income potential**: 3,060 sq ft main building plus 1,500 sq ft casita/studio reduce initial development costs.; Spacious 2.16‑acre lot** provides ample space for site planning, parking, outdoor amenities, and expansion.
