7600 Central Ave SE
Albuquerque, NM 87108
Pioneer Apartments · Multifamily Property For Sale · 23 Units

The Pioneer Apartments is a competitively priced value-added investment opportunity in an undersupplied multifamily sector, affordable housing. Since 2018, The Pioneer Apartments have undergone substantial renovations to provide secure and clean housing for low-income Albuquerque residents. Over the past fifteen (15) months, the owner invested nearly $120,000 in capital improvements, including a 6-ft tall wrought iron perimeter fence, welded crawl space covers, a new electrical panel, exterior paint, stucco repair, and unit awning replacements. Additionally, the owner converted a shell space into a unit and is converting a former maintenance/laundry room into a 23rd unit. Upon completing the former mechanical/laundry room, the Pioneer Apartments will have 23 residential units. The 22-unit building is an excellent candidate for an alliance with subsidized housing agencies.
The Pioneer Apartments (7600 Central Ave. SE) price has been reduced to $1,325,000, a $200,000 reduction. Respectively, the in-place investment returns are robust relative to market competitors. At $60,227/Unit, the October 2025 Gross Rent Multiplier (GRM) is 5.87. A GRM below 8.50 is highly unusual for a fully renovated property. Below are the acquisition investment evaluation metrics at the reduced price.
Price/Existing Unit: $60,227.00
Price/Unit + #13 (incomplete): $57,609.00
Cap Rate: 9.61%
GRM: 5.87
Pre-Tax Cash-on-Cash Return: 15.06% *Placeholder 75 LTV, 6.25% Fixed, 30-Yr. Amortization. *
Value-Add Potential
The current lease rates are 25.6% below Albuquerque Housing Authority’s (AHA) 2025 Payment Standards for full-service structures (utilities included) in zip code 87108. Respectively, the current lease rates are 23.83% below the Albuquerque metro low-income (60% of Area Median Income) rent limits.
Hypothetically, if rental income matches 2025 ABQ Housing Authority’s full-service payment standards (less a 5% vacancy factor), against October 2025 T-12 operational expenses, the cap rate equates to 12.63%
Undersupplied Affordable Housing
There is a dire need for affordable rental units in the Albuquerque MSA, which was exacerbated by 16.76% year-over-year rent growth in the wake of the pandemic (2021-2022). In a June 2024 KAOT article, a specialist of the Health, Housing, and Homelessness Department stated that “we need about 30,000 housing units to really meet the needs of the whole city.” As of 2023, nearly half of Albuquerque’s renter population is categorized as “cost-burdened,” which indicates that at least 30% of renters’ income is allocated to housing costs. Despite the nearly 4,075 multifamily under underway and 9,700 units in permitting/planning stages as of June 2023, only 8% were deemed “fully affordable” communities.
In October 2022, the City of Albuquerque debuted the “Housing Forward ABQ” plan, an initiative to address the housing crisis in our Metro. The City’s multi-faceted approach of creating 5,000 affordable units by 2025 specifically addresses existing hotel/motel conversions. To follow suit, the Integrated Development Ordinance (ABQ IDO) amended the hotel/motel conversion building requirements. Notably, converted hotel/motel units no longer require full kitchen facilities.
Improvements & Amenities
In addition to the owner’s nearly $120,000 investment in capital improvements over the past 15 months, the owner invested near $42,000 in interior unit repairs and upgrades across 13 of the existing units. Between 2018 and 2019, the property underwent a hotel/motel to multifamily conversion, which entailed new TPO roofs, windows, doors, security doors, PVC sewer lines, automatic gates, and interiors.
Utilities & HVAC
The Pioneer Apartments include master (single) electrical, gas, and water meters. The heating sources are wall-mounted furnaces. The building is air-conditioned by roof-mounted evaporative coolers and through-the-wall AC units in the studio units.
Property Highlights
Pro Forma Cap Rate: 10.70% to 12.63%.
Substantial Rental Income Upside:
Major 2023-2024 Capital Improvements: Wrought-iron perimeter fence, new electrical panel, shell space unit conversion, stucco repair, porch landings & awnings, and welded crawl space covers.
Hotel to Multifamily Conversion & Building Renovation (2017-2021).
Scope: Interiors, Exterior Paint, Double-Pane Vinyl Windows, Doors, Security Doors, Appliances, Roofs (TPO), Automatic Gate, etc.
Gated Property:
Building Perimeter Fence.
Automatic Car Gate & Limited Access Pedestrian Gates.
Opportunity for 23 Residential Units: Incomplete Mechanical/Laundry Room to Residential Unit Conversion.