Value-Add Apartment Investment
For Sale
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7600 Central Ave SE, Albuquerque, NM 87108
Competitively priced apartment complex with value-add potential in Albuquerque.
Property Size8,831 SF
Price / SF$150.04
Days on Market729
Property Features for 7600 Central Ave SE
General Information
Standard status
Active
Size
8,831 SF
Class
C
Property subtype
Multifamily
Zoning
MX-M: Mixed-Use Moderate Intensity
Occupancy
100%
Investment Type
Value Add
Net Operating Income
$127,333
Building Details
Year Built
1946
Year Renovated
2017
Buildings
1
Stories
1
Units
23
Listing Agency:
NAI Sun Vista
(505) 878-0001
Listed By:
Luke Scarpa · License #REC-2023-0302
Source:
Crexi
Added: Sep 3, 2024
Changed: Aug 17
Last Checked: Aug 31 at 5:17PM
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 NAI Sun Vista
Investment Insights
Based on property information with market context.
The Pioneer Apartments present a value-added investment opportunity in the undersupplied affordable housing multifamily sector. Substantial renovations have been completed since 2018 to provide secure and clean housing. The owner has invested nearly $120,000 in capital improvements over the past fifteen months, including a 6-ft tall wrought iron perimeter fence, welded crawl space covers, a new electrical panel, exterior paint, stucco repair, and unit awning replacements. A shell space has been converted into a unit, and a former maintenance/laundry room is being converted into a 23rd unit. Upon completion, the property will have 23 residential units. The 22-unit building is an excellent candidate for an alliance with subsidized housing agencies. The owner invested near $42,000 in interior unit repairs and upgrades across 13 of the existing units. Between 2018 and 2019, the property underwent a hotel/motel to multifamily conversion, which included new TPO roofs, windows, doors, security doors, PVC sewer lines, and automatic gates. The Pioneer Apartments include master (single) electrical, gas, and water meters. Heating is provided by wall-mounted furnaces, and air conditioning is supplied by roof-mounted evaporative coolers and through-the-wall AC units in the studio units. The property contains 8,831 square feet and is located in Albuquerque. The building is an excellent candidate for alliance with subsidized housing agencies.
Key Highlights
- Significant Value‑Add Potential: Lease rates below market standards.
- High Cash‑on‑Cash Return: Boasting a 15.06% pre‑tax return.
- Reduced Price: Price reduced by $200,000 with a favorable GRM of 5.87.
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
$74,593
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
5.63%
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%
$1,491,860
$1.5M
Cap Rate 7%
$1,065,614
$1.1M
Cap Rate 9%
$828,811
$828.8K
Market Conditions
NOI Build-Up for 8,831 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
$143.1K $16.20/SF
− Vacancy
−$7.4K −$0.84/SF
EGI
$135.6K $15.36/SF
− OpEx
−$61.0K −$6.91/SF
NOI
$74.6K $8.45/SF
Area
Albuquerque, NM
Vacancy
5.20%
Lease Rate
$16.20 /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%
$1,491,860
Cap Rate 7%
$1,065,614
Cap Rate 9%
$828,811
Alternative Uses
Best Use
Apartment 5plus
$1.07M
$932.4K – $1.24M
NOI $74,593 @ 7.0% cap · market cap 5.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.14M
$1.87M – $2.49M
NOI $149,548 @ 7.0% cap · market cap 11.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
403
Businesses Nearby
Explore this area
Business Placement
Demographics for 87108, NM
36,773
Population
19,153
Households
1.9
Avg Household Size
39
Median Age
33%
College-Educated
85%
High-School Grad
5.9 sq mi
ZIP Area
6,233
Density / Sq Mi
$39,578
Median Household Income
$31,478
Median Earnings
$828
Median Rent
$227,600
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?
Apartment building - Competitively priced apartment complex with value-add potential in Albuquerque.
Where is this apartment building located?
The property is located at 7600 Central Ave SE Albuquerque, NM.
What is the asking price?
The asking price for this property is $1,325,000.
What are key features of this property?
This property features: Significant Value‑Add Potential: Lease rates below market standards.; High Cash‑on‑Cash Return: Boasting a 15.06% pre‑tax return.; Reduced Price: Price reduced by $200,000 with a favorable GRM of 5.87.
