48 Unit Value Add Apartments
1601 Gold Ave SE, 1617 gold ave Albuquerque, NM 87106

Overview
Terrace Gardens Apartments – Prime Value-Add Opportunity Near UNM
Presenting Terrace Gardens Apartments, a 48-unit multifamily investment ideally located blocks from the University of New Mexico (UNM) in the heart of Albuquerque’s high-demand student corridor. Spread across four contiguous parcels totaling approximately 35,000 square feet, this well-positioned asset offers significant upside through strategic renovations and rental optimization.
Built in phases between 1924 and 1975, Terrace Gardens is comprised of 36 studio units, 8 one-bedroom units, 2 two-bedroom units, and 1 three-bedroom one bath unit—plus an on-site laundry facility. With a total rentable square footage of 18,511 SF, the complex is zoned R-ML, aligning well with current multifamily standards and potential upgrades.
The property is currently operating at 77% occupancy, with an average in-place rent of $710.00/unit, well below the current market averages for the area. According to the latest data, average rents in the UNM submarket stand at $860 for studios and $1,168 for one-bedroom units, reflecting a substantial gap that presents a clear value-add opportunity. The 2026 pro forma projects rents as high as $750 for studios and $900 for one-bedrooms, is still conservative given local rent trends.
The financial performance highlights include a projected 7.71% cap rate at market stabilization, with a GRM of 8.27. Pro forma financials anticipate an effective gross income of $450,900 with total annual expenses estimated at $195,784, resulting in a net operating income of $262,925. A projected return on equity of 11.36% and a debt coverage ratio of 1.34 reinforce the property’s strong investment fundamentals.
Strategically located near UNM and Central New Mexico Community College (CNM), Terrace Gardens benefits from persistent off-campus student housing demand. With UNM enrollment ranging from 25,000 to 30,000 students, and most students moving off-campus after their freshman year, walkable vintage apartments like this continue to enjoy strong occupancy and low turnover. Additionally, the area's typical roommate configurations allow two-bedroom units to offer affordability while maximizing rental income.
The broader UNM-area multifamily market remains one of Albuquerque’s most resilient areas, supported by long-term demographic and institutional tailwinds. Despite recent challenges to interest rates, investor appetite remains high for value-add opportunities in this submarket. Properties of a similar size (20–50 units) with proximity to campus, such as Terrace Gardens, are particularly attractive due to their manageable scale, high tenant demand, and potential for rehabilitation. Comparable sales in the area indicate a price range of $ 110,000–$ 140,000 per unit, placing Terrace Gardens’ offering at a competitive $67,700 per unit.
In a climate where investors are increasingly seeking stability with upside, Terrace Gardens stands out as a compelling option. Whether repositioned for long-term hold or upgraded for a future institutional exit, this property offers the bones, location, and fundamentals to support a high-performing asset in one of Albuquerque’s strongest rental corridors.
Attachments
For Sale
- Sale Price
- $3,250,000
- Price Per SF
- $175.6/SF
- Cap Rate
- 4.78%
- Building Size
- 18,511 SF
- Acres
- 0.803 ac
- Zoning Description
- Multi Family Low Density Residential
- Gross Income
- $310,404
- Net Operating Income
- $155,331
- Pro Forma NOI
- $262,925
- Total Expenses
- $155,073
- Building Name
- Terrace Gardens Apartments
- Building Class
- D
- Floors
- 3
- Year Built
- 1977
- Parking Spaces
- 42
- Submarket
- University
- Nearest MSA
- ABQ
- Property Use Type
- Investment
- Property Status
- Existing
- Average Occupancy Rate
- 80%
- Total Units
- 48
- Laundry
- Shared
- Nearest Interstate
- I-25 - 0.5 mi
- Nearest Airport
- ABQ - 4 mi
- County
- Bernalillo
- Available
- 2025-07-07
- Created
- 2025-07-08
- Updated
- 2025-07-10
- Listing ID
- fe0ce56c
- Parcel APN
- 101505731528610301