Belen Cannabis Dispensary Investment
For Sale
Contact for pricing
Pending
804 S Main St, Belen, NM 87002
Single-tenant cannabis dispensary for sale with long-term lease.
Property Size4,820 SF
Lot Size0.50 Acres
Days on Market818
Property Features for 804 S Main St
General Information
Standard status
Pending
Size
4,820 SF
Class
C
Total Parking Spaces
8
Lot size
0.50 Acres
Property subtype
Retail
Zoning
C3
Occupancy
100%
Lease Type
Modified Gross
Net Operating Income
$70,884
Building Details
Year Built
1990
Year Renovated
2023
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Coldwell Banker Commercial AMH
(631) 903-3739
Listed By:
Anthony Briguglio · License #10491212878
Source:
Crexi
Added: Jun 5, 2024
Changed: Aug 27
Last Checked: Aug 29 at 7:22PM
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 Coldwell Banker Commercial AMH
Investment Insights
Based on property information with market context.
Located at 804 S Main Street in Belen, NM, this property features a single-tenant building currently operating as a cannabis dispensary. The building has a total area of 5,000 square feet and is situated on a lot of approximately 21,780 square feet. The tenant is expanding their first location to include a smoke lounge, which will result in additional rent upon completion. A 5-year lease is in place until May 2028, with a 3% annual rent increase. The property generates a total income of $76,384, resulting in a net operating income (NOI) of $73,684. The tenant is responsible for all utilities, while the owner pays $2,700 in taxes. The property has a clean environmental record and features a new build-out. The current cap rate is 11.3%.
Key Highlights
- High 11.3% Cap Rate, generating a $73,684 Net Operating Income (NOI).
- Stable, income‑producing property with a 5‑year lease in place until May 2028, including 3% annual rent increases.
- Single‑tenant property with a thriving cannabis dispensary, expanding to include a smoke lounge which will increase rent.
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
$41,197
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
6.34%
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%
$823,940
$823.9K
Cap Rate 7%
$588,529
$588.5K
Cap Rate 9%
$457,744
$457.7K
Market Conditions
NOI Build-Up for 4,820 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
$63.6K $13.20/SF
− Vacancy
−$4.8K −$0.99/SF
EGI
$58.9K $12.21/SF
− OpEx
−$17.7K −$3.66/SF
NOI
$41.2K $8.55/SF
Area
Valencia County, NM
Vacancy
7.50%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
30.00%
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%
$823,940
Cap Rate 7%
$588,529
Cap Rate 9%
$457,744
Alternative Uses
Best Use
Retail
$588.5K
$515.0K – $686.6K
NOI $41,197 @ 7.0% cap · market cap 6.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$996.7K
$872.1K – $1.16M
NOI $69,767 @ 7.0% cap · market cap 10.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
230
Businesses Nearby
Explore this area
Business Placement
Demographics for 87002, NM
21,225
Population
9,210
Households
2.3
Avg Household Size
43
Median Age
19%
College-Educated
84%
High-School Grad
598.3 sq mi
ZIP Area
35
Density / Sq Mi
$51,537
Median Household Income
$30,896
Median Earnings
$859
Median Rent
$183,700
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Single-tenant cannabis dispensary for sale with long-term lease.
Where is this retail space located?
The property is located at 804 S Main St Belen, NM.
What is the asking price?
The asking price for this property is $649,999.
What are key features of this property?
This property features: High 11.3% Cap Rate, generating a $73,684 Net Operating Income (NOI).; Stable, income‑producing property with a 5‑year lease in place until May 2028, including 3% annual rent increases.; Single‑tenant property with a thriving cannabis dispensary, expanding to include a smoke lounge which will increase rent.
