Industrial Distribution
For Sale
$4,500,000
1011 E Second, Butte, MT 59701
CommercialSale, MT
Property Size27,940 SF
Lot Size1.81 Acres
Price / SF$161.06
Days on Market49
Property Features for 1011 E Second
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
I1 - Light Industrial
Parking
27
Parking features
Garage, Parking Lot
Subdivision
(99) All Other Areas/See Remarks
Standard status
Active
APN
0304710
Size
27,940 SF
Lot size
1.81 Acres
Taxes and HOA fees
Tax Description
S18, T03 N, R07 W, 420A, 781A, PARCEL 00B, TRACT B
Tax Annual Amount
15828
Legal Description
S18, T03 N, R07 W, 420A, 781A, PARCEL 00B, TRACT B
Utilities
Sewer type
Public Sewer
Heating system
Hot Water(Heating), Natural Gas
Water source
Public
Amenities
conference room
showers
Building Details
Year built
1990
Floors in Building
2
Building materials
Block, Frame
Roof type
Metal
Listing Agency:
Century 21 Shea Realty
(406) 723-5455
Listed By:
Jennifer Shea · License #RRE-BRO-LIC-13804
(406) 560-5366
Added: Aug 18
Changed: Sep 16
Last Checked: Oct 5 at 7:06AM
MLS# 361353
Copyright © 2026 Billings Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 27,940-square-foot distribution center occupies 1.81 acres and was constructed in 1990 with block and frame construction, a metal roof, and steel truss framing. The facility includes approximately 22,940 square feet of warehouse area and 5,000 square feet of offices. Warehouse features include approximately 20-foot ceilings, a cooler, two semi docks, three industrial overhead doors, and a drive-in bay door with ramp access. The two-story office component provides reception, multiple private offices, executive offices, a conference room, restrooms, and a walk-in safe.
Located in Butte’s Warehouse District, the property has parking for 27 vehicles plus additional yard-area parking. Building systems include hot water heat in the offices, warehouse heating and air conditioning, three-phase electric service, public water, and public sewer. The property also includes four additional exit doors and a garage and parking lot.
Located in Butte’s Warehouse District, the property has parking for 27 vehicles plus additional yard-area parking. Building systems include hot water heat in the offices, warehouse heating and air conditioning, three-phase electric service, public water, and public sewer. The property also includes four additional exit doors and a garage and parking lot.
Key Highlights
- 27,940‑square‑foot facility on 1.81 acres
- Approximately 22,940‑square‑foot warehouse and 5,000‑square‑foot office area
- Two semi docks, three industrial overhead doors, and one drive‑in bay door
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
$205,841
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
4.57%
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%
$4,116,820
$4.1M
Cap Rate 7%
$2,940,586
$2.9M
Cap Rate 9%
$2,287,122
$2.3M
Market Conditions
NOI Build-Up for 27,940 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
$261.5K $9.36/SF
− Vacancy
−$19.4K −$0.69/SF
EGI
$242.2K $8.67/SF
− OpEx
−$36.3K −$1.30/SF
NOI
$205.8K $7.37/SF
Area
Silver Bow County, MT
Vacancy
7.40%
Lease Rate
$9.36 /SF/Yr
Expense Ratio
15.00%
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%
$4,116,820
Cap Rate 7%
$2,940,586
Cap Rate 9%
$2,287,122
Alternative Uses
Best Use
Warehouse
$2.94M
$2.57M – $3.43M
NOI $205,841 @ 7.0% cap · market cap 4.57%
Second Best
Industrial
$2.42M
$2.12M – $2.83M
NOI $169,516 @ 7.0% cap · market cap 3.77%
Theoretical Best
Office A
$6.09M
$5.33M – $7.10M
NOI $426,248 @ 7.0% cap · market cap 9.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
20 ft
Clear height
2
Dock-high doors
1
Drive-in doors
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
Explore this area
Business Placement
Demographics for 59701, MT
33,937
Population
16,834
Households
2
Avg Household Size
42
Median Age
27%
College-Educated
94%
High-School Grad
509.7 sq mi
ZIP Area
67
Density / Sq Mi
$56,799
Median Household Income
$34,793
Median Earnings
$811
Median Rent
$219,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Distribution center - Block-built distribution facility with dock access, office space, vehicle parking, and three-phase electric service.
Where is this distribution center located?
The property is located at 1011 E Second Butte, MT.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: 27,940‑square‑foot facility on 1.81 acres; Approximately 22,940‑square‑foot warehouse and 5,000‑square‑foot office area; Two semi docks, three industrial overhead doors, and one drive‑in bay door
