Warehouse with NEHMU
For Sale
$950,000
725 E Cottonwood Street, Bozeman, MT 59715
Warehouse property with flexible mixed-use zoning near established Mill District destinations and planned transportation connections.
Property Size4,875 SF
Lot Size0.26 Acres
Price / SF$194.87
Days on Market562
Property Features for 725 E Cottonwood Street
General Information
Standard status
Active
Size
4,875 SF
Lot size
0.26 Acres
Property subtype
Commercial
Zoning
Call Listing Agent for Details
Additional Details
Gross Income
$18,000
Warehouse Space
4,875 SF
Taxes and HOA fees
Annual Taxes
$6,046
Building Details
Building Size
4,875 SF
Year Built
1895
Buildings
1
Listing Agency:
McLeod Real Estate Group, LLC
(406) 579-1989
Listed By:
Ethan Stokes · License #RBS-52525
(406) 579-1989
Source:
Outlaw
Added: Feb 14, 2025
Changed: Aug 29
Last Checked: Aug 30 at 2:17PM
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 McLeod Real Estate Group, LLC
Investment Insights
Based on property information with market context.
The property includes an approximately 4,875-square-foot storage warehouse on an approximately 11,500-square-foot lot. NEHMU zoning supports residential, commercial, retail, and bar or restaurant uses, as well as accessory dwelling units. The existing occupancy is on a month-to-month arrangement, providing flexibility for future planning.
Located in northeast Bozeman’s Mill District, the property sits one block from Wild Crumb Bakery, Treeline Coffee, Finks Deli, and the Wildlands residences. It is positioned at a potential future connection between the east section of East Cottonwood Road and original Front Street. The City’s Transportation Plan includes a proposed reconnection and upgrade with roadway and walking and biking paths, while the site also functions as an interconnection point for sewer, water, and other utilities serving the eastern Mill District.
The lot to the north is also available. Together, the properties comprise an 18,600-square-foot site identified for potential commercial and residential redevelopment with parking.
Located in northeast Bozeman’s Mill District, the property sits one block from Wild Crumb Bakery, Treeline Coffee, Finks Deli, and the Wildlands residences. It is positioned at a potential future connection between the east section of East Cottonwood Road and original Front Street. The City’s Transportation Plan includes a proposed reconnection and upgrade with roadway and walking and biking paths, while the site also functions as an interconnection point for sewer, water, and other utilities serving the eastern Mill District.
The lot to the north is also available. Together, the properties comprise an 18,600-square-foot site identified for potential commercial and residential redevelopment with parking.
Key Highlights
- Approximately 4,875‑square‑foot storage warehouse
- Approximately 11,500‑square‑foot lot
- NEHMU zoning permits residential, commercial, retail, bar/restaurant, and ADU uses
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
$67,056
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
7.06%
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%
$1,341,120
$1.3M
Cap Rate 7%
$957,943
$957.9K
Cap Rate 9%
$745,067
$745.1K
Market Conditions
NOI Build-Up for 4,875 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
$117.0K $24.00/SF
− Vacancy
−$9.7K −$1.99/SF
EGI
$107.3K $22.01/SF
− OpEx
−$40.2K −$8.25/SF
NOI
$67.1K $13.76/SF
Area
Gallatin County, MT
Vacancy
8.30%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,341,120
Cap Rate 7%
$957,943
Cap Rate 9%
$745,067
Alternative Uses
Best Use
Mixed Use
$957.9K
$838.2K – $1.12M
NOI $67,056 @ 7.0% cap · market cap 7.06%
Second Best
Warehouse
$878.2K
$768.4K – $1.02M
NOI $61,473 @ 7.0% cap · market cap 6.47%
Theoretical Best
Office A
$1.27M
$1.11M – $1.49M
NOI $89,107 @ 7.0% cap · market cap 9.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,504
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59715, MT
37,286
Population
17,116
Households
2.2
Avg Household Size
30
Median Age
68%
College-Educated
98%
High-School Grad
294.9 sq mi
ZIP Area
126
Density / Sq Mi
$85,000
Median Household Income
$31,646
Median Earnings
$1,376
Median Rent
$755,300
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - Warehouse property with flexible mixed-use zoning near established Mill District destinations and planned transportation connections.
Where is this warehouse located?
The property is located at 725 E Cottonwood Street Bozeman, MT.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Approximately 4,875‑square‑foot storage warehouse; Approximately 11,500‑square‑foot lot; NEHMU zoning permits residential, commercial, retail, bar/restaurant, and ADU uses
