723 N New York Ave

This offering presents a rare opportunity to acquire a fully leased, single-tenant government investment property occupied by the State of New Mexico Corrections Department’s Adult Probation and Parole Division. The 2,940-square-foot office asset was completely renovated in September 2024 and is secured by a newly executed long-term lease, providing stable and predictable income backed by a strong government credit tenant. Strategically located in Alamogordo near major economic and employment drivers including Holloman Air Force Base and White Sands Missile Range, the property offers an attractive high-yield investment profile with minimal deferred maintenance and low management requirements.
The lease structure provides strong cash flow and built-in reimbursements, with initial annual income totaling approximately $141,040.02, including base rent, tenant improvement reimbursement, and operating expense reimbursement. Initial NOI is approximately $119,040, consisting of $69,552 in annual base rent and $49,488.42 in annual TI reimbursement, along with annual reporting cost reimbursements of approximately $21,999.60 featuring 2.5% annual escalations. The property operates under a modified gross lease structure, with the landlord responsible for overall property maintenance while benefiting from operating expense and tenant improvement reimbursements. The lease commenced on October 1, 2024 and extends through September 30, 2034, with two additional five-year extension options and 10% rental increases at each option period. Backed by the State of New Mexico guaranty, this single-tenant investment delivers a compelling combination of long-term stability, strong government tenancy, and an attractive 10.87% cap rate.