723 New York Ave
Alamogordo, NM 88310
10.87% CAP RATE GOVERNMENT BUILDING · Office Property For Sale

This is a rare opportunity to acquire a fully leased, single-tenant government investment backed by the State of New Mexico Corrections Department. The property underwent a complete renovation in September 2024 and is secured by a new 10-year lease, providing stable, predictable cash flow with built-in reimbursements and long-term upside. Strategically located in Alamogordo near major employment drivers including Holloman Air Force Base and White Sands Missile Range, this asset offers a high-yield, low- management investment profile with strong credit tenancy and minimal deferred maintenance.
This ±2,940 SF office property underwent a complete renovation in September 2024 and is secured by a new long-term lease providing stable and predictable cash flow. The investment offers a passive income structure with built-in reimbursements, strong governmental tenancy, and minimal deferred maintenance.
Strategically located in Alamogordo near Holloman Air Force Base and White Sands Missile Range, the property benefits from strong regional economic drivers and long-term governmental presence.
KEY INVESTMENT HIGHLIGHTS
» Government-backed tenant (strong credit profile)
» Brand new renovation – minimal capital expenditures
» Passive income structure with expense reimbursements
» Long-term lease with extension options
» Strong surrounding economic drivers (military + federal)
» High-yield return at a 10.87% cap rate
TENANT: New Mexico Corrections Adult Probation and Parole Division
INITIAL ANNUAL INCOME: $141,040.02 (Lease Year 1. Includes Annual Base Rent, TI Reimbursement, Operating Expense Reimbursement)
INITIAL NOI: $119,040 ($69,552 Annual Base Rent + $49,488.42 Annual TI Reimbursement
INITIAL ANNUAL REPORTING COST REIMBURSEMENT: $21,999.60 (built-in 2.50% Annual escalations)
LEASE TYPE: Modified Gross
LANDLORD RESPONSIBILITIES:Landlord maintains the property in its entirety
LEASE TERM: 30 year lease with base period of 10 year and two 5 year extensions
LEASE COMMENCEMENT: October 1, 2024
LEASE EXPIRATION: September 30, 2034
RENTAL INCREASES: 10% at option
OPTION TERMS: 2 x 5-Years extensions
TENANCY: Single
TENANT REIMBURSEMENTS: Operating expenses + TI reimbursement GUARANTY: State of New Mexico