Manufacturing Facility with Rail
New
For Sale
$12,000,000
203 E Railroad St, Laurel, MT 59044
Four buildings combine production, storage, and office space with an on-site rail connection.
Property Size111,232 SF
Days on Market5
Property Features for 203 E Railroad St
General Information
Standard status
Active
Size
111,232 SF
Property subtype
Industrial
Building Details
Building Size
111,232 SF
Year Built
1975
Listed By:
George Warmer, SIOR, CCIM · License #MT #RRE-RBS-LIC-14174
(406) 855-8946
Source:
Cbcmontana
Added: Oct 1
Last Checked: Oct 4 at 8:18AM
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 George Warmer, SIOR, CCIM
Investment Insights
Based on property information with market context.
This 19.12-acre manufacturing property in Laurel, Montana, includes four buildings: an 88,380-square-foot production facility, a 20,800-square-foot storage building, a 1,836-square-foot office, and a 216-square-foot guard shack. The main facility dates to 1975 and has 24-foot clear height, concrete floors, and 11 overhead doors, each up to 22 feet wide. Electrical service is 750 kVA. The site also has an on-site rail spur, truck scale, and yard area for outdoor storage and vehicle circulation.
The property is on E Railroad Street, with access to I-90 and regional transportation routes. National and corporate retailers are located nearby. Utility providers include NorthWestern Energy for power, Montana-Dakota Utilities for natural gas, and the City of Laurel for water.
The property is on E Railroad Street, with access to I-90 and regional transportation routes. National and corporate retailers are located nearby. Utility providers include NorthWestern Energy for power, Montana-Dakota Utilities for natural gas, and the City of Laurel for water.
Key Highlights
- 19.12‑acre site with four buildings
- 88,380‑square‑foot manufacturing facility and 20,800‑square‑foot storage building
- On‑site rail spur and truck scale
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
$812,633
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
6.77%
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%
$16,252,660
$16.3M
Cap Rate 7%
$11,609,043
$11.6M
Cap Rate 9%
$9,029,256
$9.0M
Market Conditions
NOI Build-Up for 111,232 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
$1.00M $9.00/SF
− Vacancy
−$45.0K −$0.41/SF
EGI
$956.0K $8.59/SF
− OpEx
−$143.4K −$1.29/SF
NOI
$812.6K $7.31/SF
Area
Yellowstone County, MT
Vacancy
4.50%
Lease Rate
$9.00 /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%
$16,252,660
Cap Rate 7%
$11,609,043
Cap Rate 9%
$9,029,256
Alternative Uses
Best Use
Warehouse
$11.61M
$10.16M – $13.54M
NOI $812,633 @ 7.0% cap · market cap 6.77%
Second Best
Industrial
$9.56M
$8.37M – $11.15M
NOI $669,227 @ 7.0% cap · market cap 5.58%
Theoretical Best
Office A
$24.16M
$21.14M – $28.19M
NOI $1,691,438 @ 7.0% cap · market cap 14.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
478
Businesses Nearby
Explore this area
Business Placement
Demographics for 59044, MT
12,099
Population
5,247
Households
2.3
Avg Household Size
41
Median Age
27%
College-Educated
95%
High-School Grad
175.1 sq mi
ZIP Area
69
Density / Sq Mi
$86,011
Median Household Income
$40,535
Median Earnings
$983
Median Rent
$317,200
Median Home Value
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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?
Manufacturing property - Four buildings combine production, storage, and office space with an on-site rail connection.
Where is this manufacturing property located?
The property is located at 203 E Railroad St Laurel, MT.
What is the asking price?
The asking price for this property is $12,000,000.
What are key features of this property?
This property features: 19.12‑acre site with four buildings; 88,380‑square‑foot manufacturing facility and 20,800‑square‑foot storage building; On‑site rail spur and truck scale
