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.
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 reimbursementGUARANTY: State of New Mexico