1259 Siler Road

Description

Exceptional 7% cap industrial investment opportunity in Santa Fe, New Mexico. Located at 1259 Siler Road, this fully leased, industrial/flex property offers a rare chance to acquire a high-performing asset in one of the city's most established and supply-constrained commercial corridors. The site features 18,200 square feet of functional space, 3,200 square feet of rear storage, and sits on a fully improved one-acre parcel with I-2 zoning, within a federally designated Opportunity Zone. The property is leased to JMT North LLC d.b.a. Johnstone Supply, a nationally recognized HVAC/R distributor with 450+ locations and over $2 billion in annual revenue. Johnstone Supply has occupied the site since 2008, demonstrating strong tenant stability. The lease includes 4% annual rent increases, starting at $252,000, in 2026 and rising to nearly $295,000 by 2030. Year one Cap rate projected at 7.0%. The rear tenant also has a fresh 5 year lease renewal, also with 4% annual rent increases. Santa Fe's industrial market fundamentals are robust, with a vacancy rate of just 1.28% and limited new supply. The building's flexible layout supports both warehouse and office use, appealing to a wide range of tenants. I-2 zoning further expands allowable uses, offering downside protection and adaptability. Its location in an Opportunity Zone also provides qualified investors with potential tax advantagesfrom capital gains deferral to possible exclusion on appreciation. Backed by a long-term, institutional-grade tenant and strong market dynamics, 1259 Siler Road presents a compelling opportunity for both stable income and long-term value creation. Seller is a NM Real Estate Licensee.