Mixed-Use Property With
For Sale
$2,250,000
124 Morrison Lane, Bonner, MT 59823
Multi-building property combines heated shop space, a residence, highway access, and creek frontage in a rural Montana setting.
Property Size14,250 SF
Price / SF$157.89
Days on Market1167
Property Features for 124 Morrison Lane
General Information
Standard status
Active
Size
14,250 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$14,332
Building Details
Year Built
2006
Listing Agency:
Clearwater Montana Properties - Frenchtown
(406) 396-8110
Listed By:
Kristen Clark · License #RRE-BRO-LIC-89437
(406) 396-8110
Source:
Exitrealty
Added: Jun 23, 2023
Changed: Aug 30
Last Checked: Aug 31 at 1:53PM
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 Clearwater Montana Properties - Frenchtown
Investment Insights
Based on property information with market context.
This mixed-use property on 8.16 acres includes two substantial shops and a custom residence. The 50X70 finished shop has office space, a bathroom, interior water lines, insulation, heating, three-phase power, and access to a loading dock. The second shop measures 6600 square feet and includes a bathroom. Both buildings are served by a loop driveway with access from Hwy 200 E.
Built in 2006, the 4126 square foot home provides three bedrooms, two and a half bathrooms, a three-car attached garage, zero-step entry, black walnut cabinetry, built-ins, a wet bar, laundry room, patio access, and a hot tub. Union Creek flows along the southern end of the property. The property is located at 124 Morrison Lane in Bonner, Montana, with Johnsrud Park and Gold Creek Campground approximately 10 minutes away and the Blackfoot-Clearwater Wildlife Management Area 19 miles away.
Built in 2006, the 4126 square foot home provides three bedrooms, two and a half bathrooms, a three-car attached garage, zero-step entry, black walnut cabinetry, built-ins, a wet bar, laundry room, patio access, and a hot tub. Union Creek flows along the southern end of the property. The property is located at 124 Morrison Lane in Bonner, Montana, with Johnsrud Park and Gold Creek Campground approximately 10 minutes away and the Blackfoot-Clearwater Wildlife Management Area 19 miles away.
Key Highlights
- 8.16‑acre mixed‑use property with two shops and a 4126 square foot residence
- 50X70 finished shop with office, bathroom, interior water lines, insulation, heating, and three‑phase power
- Second 6600 square foot shop includes a bathroom and is soon to be sided
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
$176,062
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
7.82%
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%
$3,521,240
$3.5M
Cap Rate 7%
$2,515,171
$2.5M
Cap Rate 9%
$1,956,244
$2.0M
Market Conditions
NOI Build-Up for 14,250 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
$307.8K $21.60/SF
− Vacancy
−$36.9K −$2.59/SF
EGI
$270.9K $19.01/SF
− OpEx
−$94.8K −$6.65/SF
NOI
$176.1K $12.36/SF
Area
Missoula County, MT
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
35.00%
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%
$3,521,240
Cap Rate 7%
$2,515,171
Cap Rate 9%
$1,956,244
Alternative Uses
Best Use
Flex RnD
$2.52M
$2.20M – $2.93M
NOI $176,062 @ 7.0% cap · market cap 7.82%
Second Best
Warehouse
$1.80M
$1.57M – $2.09M
NOI $125,699 @ 7.0% cap · market cap 5.59%
Theoretical Best
Specialty Retail
$4.11M
$3.60M – $4.79M
NOI $287,601 @ 7.0% cap · market cap 12.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5
Businesses Nearby
Explore this area
Business Placement
Demographics for 59823, MT
1,684
Population
865
Households
1.9
Avg Household Size
46
Median Age
38%
College-Educated
99%
High-School Grad
520.2 sq mi
ZIP Area
3
Density / Sq Mi
$82,548
Median Household Income
$43,852
Median Earnings
$688
Median Rent
$465,800
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Multi-building property combines heated shop space, a residence, highway access, and creek frontage in a rural Montana setting.
Where is this mixed-use property located?
The property is located at 124 Morrison Lane Bonner, MT.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: 8.16‑acre mixed‑use property with two shops and a 4126 square foot residence; 50X70 finished shop with office, bathroom, interior water lines, insulation, heating, and three‑phase power; Second 6600 square foot shop includes a bathroom and is soon to be sided
