Historic Restaurant Property in Las
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118 N Mesquite St, Las Cruces, NM 88001
Restored restaurant with unique features in the Mesquite Historic District.
Property Size3,234 SF
Price / SF$239.64
Days on Market728
Property Features for 118 N Mesquite St
General Information
Standard status
Active
Size
3,234 SF
Class
A
Property subtype
Retail
Zoning
South Mesquite Overlay
Listing Agency:
STEINBORN / TCN Commercial Real Estate
Listed By:
Kary Bulsterbaum · License #NM 43302
(575) 639-1208
Source:
Crexi
Added: Sep 5, 2024
Changed: Aug 24
Last Checked: Sep 1 at 7:19PM
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 STEINBORN / TCN Commercial Real Estate
Investment Insights
Based on property information with market context.
This is a historically preserved restaurant property with unique features, located in the Mesquite Historic District and the Arts and Cultural District of Las Cruces. The original structure was built in 1940 and has been restored with attention to detail. Unique elements include original light fixtures above the gas fireplace, renovated and restored original windows, and enhancement of the original stone. The entire internal and external electrical system has been upgraded to full commercial grade. Internal and external lighting packages have been upgraded and offer dimming capabilities. A full-scale state-of-the-art commercial kitchen, bar, and walk-in wine closet were constructed in 2020. Separate HVAC systems are in place for the dining area and kitchen areas, and the wine rack system has its own mini-split cooling system. An extensive equipment inventory is offered with the property. In 2023, an extensive expansion of an outdoor patio space and bar added almost 1000 square feet of space under the roof, with lighting options, drainage, outdoor heaters, and outdoor cooling and vent systems. Both the interior and exterior areas have a sound system. Additional land area can be converted for additional private event space or dining areas, and a residential apartment allows for creative use of space. An 8 ft X 10 ft cellar in the main building and covered storage behind the residential apartment offer additional storage space. The property sits in the original southerly pass of El Camino Real de Tierra Adentro and due east of the revitalized Main Street Downtown District, with ease of access and centralization off of major streets and roadways. The location is at the front doorstep of Klein Park and directly adjacent to the "Bean" coffee shop and La Nueva Casita Cafe. The property size is 3234 square feet.
Key Highlights
- Prime location in the Mesquite Historic District and Arts & Cultural District, near Klein Park and other businesses, with easy access to major roadways.
- Fully equipped, state‑of‑the‑art commercial kitchen, bar, and walk‑in wine closet built in 2020 with dedicated cooling.**
- Extensive outdoor patio and bar expansion (almost 1000 sq ft) with lighting, drainage, heaters, and cooling systems.**
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
$29,615
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
3.82%
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%
$592,300
$592.3K
Cap Rate 7%
$423,071
$423.1K
Cap Rate 9%
$329,056
$329.1K
Market Conditions
NOI Build-Up for 3,234 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
$42.7K $13.20/SF
− Vacancy
−$3.2K −$0.99/SF
EGI
$39.5K $12.21/SF
− OpEx
−$9.9K −$3.05/SF
NOI
$29.6K $9.16/SF
Area
Las Cruces, NM
Vacancy
7.50%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
25.00%
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%
$592,300
Cap Rate 7%
$423,071
Cap Rate 9%
$329,056
Alternative Uses
Best Use
Specialty Retail
$423.1K
$370.2K – $493.6K
NOI $29,615 @ 7.0% cap · market cap 3.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$565.9K
$495.2K – $660.3K
NOI $39,615 @ 7.0% cap · market cap 5.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,729
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 88001, NM
36,831
Population
16,985
Households
2.2
Avg Household Size
30
Median Age
29%
College-Educated
83%
High-School Grad
11.1 sq mi
ZIP Area
3,318
Density / Sq Mi
$32,978
Median Household Income
$23,195
Median Earnings
$797
Median Rent
$158,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restored restaurant with unique features in the Mesquite Historic District.
Where is this conventional restaurant located?
The property is located at 118 N Mesquite St Las Cruces, NM.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: Prime location in the Mesquite Historic District and Arts & Cultural District, near Klein Park and other businesses, with easy access to major roadways.; Fully equipped, state‑of‑the‑art commercial kitchen, bar, and walk‑in wine closet built in 2020 with dedicated cooling.**; Extensive outdoor patio and bar expansion (almost 1000 sq ft) with lighting, drainage, heaters, and cooling systems.**
