Located on a private lane in the heart of Santa Fe, just five minutes from the historic Plaza, 1858 Palacio Lane offers breathtaking Sandia and Ortiz Mountain views and exceptional privacy. Perfectly sited on 1.38 acres, this 3,970 sq. ft. soft contemporary residence features 4 bedrooms, 3.5 baths, and state-of-the-art geothermal heating. Built in 2013, the home was designed for seamless indoor-outdoor living.The south-facing patio is a true sanctuary, framed by dramatic grape arbors, towering aspens, a stunning rose garden, and a contemporary gas fireplace. Expansive floor-to-ceiling glass doors flood the interiors with natural light while dissolving the boundary between indoors and out. A striking glass-encased fireplace separates the living room from the formal dining area and bar, creating a sophisticated focal point within the open-concept floor plan. The chef's kitchen features a generous island, abundant storage, and beautiful views of the surrounding gardens and patios, making it ideal for entertaining and everyday living. Additional living spaces include a cozy den with patio access, a large laundry room, mudroom, and pantry. The bedroom wing offers two ensuite guest bedrooms, a powder room, and a versatile office or flex space. The primary suite serves as a private retreat with sliding glass doors opening to east- and west-facing patios. The spa-inspired bath features double vanities, a soaking tub, walk-in shower with three shower heads, and a spacious walk-in closet. A 3-car garage with workshop space and permitted plans for a future guest house further enhance the property's appeal. An additional benefit is the existing Short-Term Rental Ordinance permit and successful rental history, offering flexibility for owners seeking supplemental income. Whether enjoyed as a full-time residence, Santa Fe retreat, or occasional income-producing property, 1858 Palacio Lane offers an exceptional lifestyle in one of Santa Fe's most desirable in-town settings.