Historic Office
For Sale
Contact for pricing
1005 Gerald Ave, Missoula, MT 59801
National Register-listed property with adaptable space and U-R4 zoning for office, medical, wellness, or educational uses.
Property Size18,875 SF
Price / SF$137.75
Days on Market8
Property Features for 1005 Gerald Ave
General Information
Standard status
Active
Size
18,875 SF
Property subtype
OFFICE
Zoning
U-R4
Building Details
Buildings
1
Listing Agency:
Sterling CRE Advisors
(406) 546-4752
Listed By:
Joe Tredik
(406) 546-4752
Source:
Moodyscre
Added: Jul 30
Changed: Aug 2
Last Checked: Aug 6 at 11:38AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Sterling CRE Advisors
Investment Insights
Based on property information with market context.
The John R. Toole House is a National Register-listed historic office property with approximately 13,977 square feet above grade and an additional 4,898 square feet of below-grade space. Its existing character and flexible configuration support consideration of professional office, boutique medical or wellness, institutional, educational, and residential condominium concepts subject to historic preservation standards.
The property is located at 1005 Gerald Avenue in Missoula’s University District and carries adopted U-R4 zoning. The historic designation provides eligibility for the Federal 20% Historic Tax Credit and Montana’s 5% Historic Tax Credit for qualified rehabilitation work. The asset may suit an owner-user or mission-driven investor seeking a distinctive property with multiple redevelopment pathways.
The property is located at 1005 Gerald Avenue in Missoula’s University District and carries adopted U-R4 zoning. The historic designation provides eligibility for the Federal 20% Historic Tax Credit and Montana’s 5% Historic Tax Credit for qualified rehabilitation work. The asset may suit an owner-user or mission-driven investor seeking a distinctive property with multiple redevelopment pathways.
Key Highlights
- National Register‑listed historic property at 1005 Gerald Ave, Missoula, MT 59801
- Approximately ±13,977 square feet above grade
- Additional ±4,898 square feet of below‑grade space
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$219,988
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.46%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,399,760
$4.4M
Cap Rate 7%
$3,142,686
$3.1M
Cap Rate 9%
$2,444,311
$2.4M
Market Conditions
NOI Build-Up for 18,875 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$396.4K $21.00/SF
− Vacancy
−$103.1K −$5.46/SF
EGI
$293.3K $15.54/SF
− OpEx
−$73.3K −$3.89/SF
NOI
$220.0K $11.66/SF
Area
Missoula County, MT
Vacancy
26.00%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,399,760
Cap Rate 7%
$3,142,686
Cap Rate 9%
$2,444,311
Alternative Uses
Best Use
Healthcare Medical
$3.65M
$3.19M – $4.26M
NOI $255,424 @ 7.0% cap · market cap 9.82%
Second Best
Office B
$3.14M
$2.75M – $3.67M
NOI $219,988 @ 7.0% cap · market cap 8.46%
Theoretical Best
Specialty Retail
$5.44M
$4.76M – $6.35M
NOI $380,945 @ 7.0% cap · market cap 14.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,326
Businesses Nearby
Explore this area
Business Placement
Demographics for 59801, MT
30,629
Population
15,814
Households
1.9
Avg Household Size
34
Median Age
51%
College-Educated
97%
High-School Grad
7.7 sq mi
ZIP Area
3,978
Density / Sq Mi
$55,022
Median Household Income
$34,320
Median Earnings
$1,086
Median Rent
$393,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - National Register-listed property with adaptable space and U-R4 zoning for office, medical, wellness, or educational uses.
Where is this office building located?
The property is located at 1005 Gerald Ave Missoula, MT.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: National Register‑listed historic property at 1005 Gerald Ave, Missoula, MT 59801; Approximately ±13,977 square feet above grade; Additional ±4,898 square feet of below‑grade space
