Freestanding Restaurant with
New
For Sale
$2,750,000
1275 Us Highway 2 E, Kalispell, MT 59901
Existing FF&E, commercial kitchen, gaming endorsement, and beer-and-wine license support continued restaurant operations.
Property Size5,983 SF
Lot Size1.01 Acres
Price / SF$459.64
Days on Market4
Property Features for 1275 Us Highway 2 E
General Information
Standard status
Active
Size
5,983 SF
Lot size
1.01 Acres
Zoning
1
Financials
Asking Price
$2,750,000
Business Included
Yes
Site & Location
Traffic Count
21,213 vehicles/day
Highway Access
Yes
Road Access
Yes
Restaurant
Equipment Included
Yes
Liquor License
Yes
Additional Details
Furnished
Yes
Building Details
Building Size
5,983 SF
Year Built
1955
Buildings
1
Listing Agency:
Eagen Real Estate
(406) 542-1811
Listed By:
Jessie M Eagen · License #8043
Source:
Purewestrealestate
Added: Aug 28
Changed: Aug 30
Last Checked: Aug 30 at 10:53PM
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 Eagen Real Estate
Investment Insights
Based on property information with market context.
This freestanding restaurant property includes a 5983-square-foot building on a 1.01-acre commercial parcel. The interior contains a dedicated dining area, separate casino room, full commercial kitchen, service bar, and Western-themed finishes. Furniture, fixtures, and equipment convey with the property, along with a City of Kalispell beer and wine license carrying a gaming endorsement. The building dates to 1955.
The property fronts US Highway 2 E in Kalispell and recorded 21,213 vehicles per day AADT based on MDT 2022 data. On-site parking, prominent signage, and highway access are included. The offering combines the real estate, operating improvements, restaurant equipment, and licensing elements in one asset.
The property fronts US Highway 2 E in Kalispell and recorded 21,213 vehicles per day AADT based on MDT 2022 data. On-site parking, prominent signage, and highway access are included. The offering combines the real estate, operating improvements, restaurant equipment, and licensing elements in one asset.
Key Highlights
- 5983 SF freestanding restaurant building on a 1.01‑acre commercial parcel
- City of Kalispell beer & wine license with gaming endorsement
- 21,213 vehicles per day AADT along US Highway 2 E, based on MDT 2022
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
$82,526
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
3.00%
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%
$1,650,520
$1.7M
Cap Rate 7%
$1,178,943
$1.2M
Cap Rate 9%
$916,956
$917.0K
Market Conditions
NOI Build-Up for 5,983 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
$113.4K $18.96/SF
− Vacancy
−$3.4K −$0.57/SF
EGI
$110.0K $18.39/SF
− OpEx
−$27.5K −$4.60/SF
NOI
$82.5K $13.79/SF
Area
Flathead County, MT
Vacancy
3.00%
Lease Rate
$18.96 /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%
$1,650,520
Cap Rate 7%
$1,178,943
Cap Rate 9%
$916,956
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.03M – $1.38M
NOI $82,526 @ 7.0% cap · market cap 3.00%
Second Best
Hotel Hospitality
$643.1K
$562.7K – $750.3K
NOI $45,016 @ 7.0% cap · market cap 1.64%
Theoretical Best
Office A
$1.34M
$1.17M – $1.56M
NOI $93,507 @ 7.0% cap · market cap 3.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
21,213 VPD
Traffic count
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
221
Businesses Nearby
88k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 36%
Dining 31%
Shops & Services 10%
Office Supplies 9%
Super 1 Foods
Groceries
31,713 visits/mo
0.1 miles
McDonald's
Dining
15,865 visits/mo
0.5 miles
Burger King
Dining
8,279 visits/mo
0.3 miles
Staples
Office Supplies
7,833 visits/mo
0.1 miles
Tractor Supply Co.
Home Improvements & Furnishings
7,436 visits/mo
0.3 miles
Demographics for 59901, MT
57,900
Population
25,154
Households
2.3
Avg Household Size
40
Median Age
33%
College-Educated
96%
High-School Grad
468.8 sq mi
ZIP Area
124
Density / Sq Mi
$70,391
Median Household Income
$38,073
Median Earnings
$1,052
Median Rent
$417,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Existing FF&E, commercial kitchen, gaming endorsement, and beer-and-wine license support continued restaurant operations.
Where is this conventional restaurant located?
The property is located at 1275 Us Highway 2 E Kalispell, MT.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: 5983 SF freestanding restaurant building on a 1.01‑acre commercial parcel; City of Kalispell beer & wine license with gaming endorsement; 21,213 vehicles per day AADT along US Highway 2 E, based on MDT 2022
