7600 Central SE Ave Albuquerque, NM 87108-2677

The Pioneer Apartments, a 22-unit apartment building located at 7600 Central Ave SE, Albuquerque, NM 87108, presents a compelling value-add investment opportunity. This single-story, 10,515 square foot building, situated on a 0.63-acre lot (APN: 101905716808030426), boasts 9,258 square feet of net rentable space. Built in 1946 and extensively renovated between 2017 and 2021, the property currently enjoys a 91% occupancy rate (as of September 3, 2024). Recent capital improvements exceeding $120,000 include a new perimeter fence, crawl space covers, electrical panel, exterior paint, stucco repairs, and awning replacements. Furthermore, the conversion of a shell space into a unit and an ongoing conversion of a former maintenance/laundry room into a 23rd unit are underway. The property is zoned MX-M (Mixed-Use Moderate Intensity) and features master utility meters (electric, gas, and water). Heating is provided by wall-mounted furnaces, while cooling is achieved through roof-mounted evaporative coolers and through-the-wall AC units in studio apartments. The asking price is $1,325,000 ($60,227 per unit), yielding a current cap rate of 8.79% and a projected pro-forma cap rate of 11.96%. The current Net Operating Income (NOI) is $116,473, with a pro-forma NOI of $158,410. This property offers significant upside potential due to its location in an undersupplied affordable housing market and the opportunity to increase rental rates. The current lease rates are significantly below market rates, presenting a substantial opportunity to enhance profitability.