Mixed-Use Property with
New
For Sale
$1,399,000
1282 Us Hwy 2, Kalispell, MT 59901
Remodeled commercial space and five occupied apartments combine food service, retail, and residential components in one building.
Property Size6,568 SF
Days on Market2
Property Features for 1282 Us Hwy 2
General Information
Standard status
Active
Size
6,568 SF
Total Parking Spaces
22
Property subtype
Commercial
Zoning
Business, B-2; Evergreen Enterprise Over
Units
Unit Mix
4 x 1BR, 1 x 3BR
Multifamily Units
5
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$7,040
Building Details
Building Size
6,568 SF
Year Built
1977
Listing Agency:
PureWest Real Estate - Kal/Commercial
(406) 250-7249
Listed By:
David G Stone
(406) 250-7249
Source:
Avatarrealtymt
Added: Aug 5
Changed: Aug 6
Last Checked: Aug 6 at 1:44AM
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 PureWest Real Estate - Kal/Commercial
Investment Insights
Based on property information with market context.
This mixed-use property combines a remodeled commercial area with residential units above. The ground floor contains 3,348 SF configured for food service or retail use, while the upper level includes five occupied apartments: four one-bedroom units and one three-bedroom unit. The apartments have been updated within the past several years.
The property is located just off US Hwy 2 E in Kalispell and includes dedicated front parking, an additional parking lot, and a residential carport. It is zoned Business, B-2; Evergreen Enterprise Over. Originally built in 1977, the building has a new roof on the main structure and residential carport. A recent inspection identified critical items that were addressed by the current and previous owners.
The property is located just off US Hwy 2 E in Kalispell and includes dedicated front parking, an additional parking lot, and a residential carport. It is zoned Business, B-2; Evergreen Enterprise Over. Originally built in 1977, the building has a new roof on the main structure and residential carport. A recent inspection identified critical items that were addressed by the current and previous owners.
Key Highlights
- 3,348 SF remodeled ground‑floor space configured for food service or retail
- Five fully occupied apartments: four 1‑bdrm and one 3‑bdrm
- Apartments remodeled within the past several years
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
$93,170
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
6.66%
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%
$1,863,400
$1.9M
Cap Rate 7%
$1,331,000
$1.3M
Cap Rate 9%
$1,035,222
$1.0M
Market Conditions
NOI Build-Up for 6,568 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
$137.9K $21.00/SF
− Vacancy
−$4.8K −$0.74/SF
EGI
$133.1K $20.27/SF
− OpEx
−$39.9K −$6.08/SF
NOI
$93.2K $14.19/SF
Area
Flathead County, MT
Vacancy
3.50%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,863,400
Cap Rate 7%
$1,331,000
Cap Rate 9%
$1,035,222
Alternative Uses
Best Use
Retail
$1.33M
$1.16M – $1.55M
NOI $93,170 @ 7.0% cap · market cap 6.66%
Second Best
Specialty Retail
$1.29M
$1.13M – $1.51M
NOI $90,595 @ 7.0% cap · market cap 6.48%
Theoretical Best
Office A
$1.47M
$1.28M – $1.71M
NOI $102,650 @ 7.0% cap · market cap 7.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
5
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
221
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Remodeled commercial space and five occupied apartments combine food service, retail, and residential components in one building.
Where is this mixed-use property located?
The property is located at 1282 Us Hwy 2 Kalispell, MT.
What is the asking price?
The asking price for this property is $1,399,000.
What are key features of this property?
This property features: 3,348 SF remodeled ground‑floor space configured for food service or retail; Five fully occupied apartments: four 1‑bdrm and one 3‑bdrm; Apartments remodeled within the past several years
