Equipped Commercial
For Sale
$275,000
218 & 220 7th Street, Bozeman, MT 59715
Existing bakery operations include established recipes, operating systems, and delivery capabilities.
Property Size1,000 SF
Price / SF$275
Days on Market38
Property Features for 218 & 220 7th Street
General Information
Standard status
Active
Size
1,000 SF
Property subtype
CommercialSale
Additional Details
Business Included
Yes
Equipment Included
Yes
Listing Agency:
ERA Landmark Real Estate
(406) 600-9034
Listed By:
Robin Nelson · License #RRE-RBS-LIC-17457
(406) 600-9034
Source:
Montanarootsrealty
Added: Jul 27
Changed: Aug 30
Last Checked: Aug 31 at 5:14PM
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 ERA Landmark Real Estate
Investment Insights
Based on property information with market context.
The offering includes the commercial kitchen associated with Cupcake Mountain Cupcakery LLC, together with kitchen equipment, established operating procedures, and recipes. Delivery capabilities are also identified, providing an additional operating component for the bakery business.
The property is located at 218 & 220 7th Street in Bozeman, Montana. The available information describes an operating bakery concept with its kitchen infrastructure and business systems in place, while the listed property size is 1000 without a stated unit of measurement.
The property is located at 218 & 220 7th Street in Bozeman, Montana. The available information describes an operating bakery concept with its kitchen infrastructure and business systems in place, while the listed property size is 1000 without a stated unit of measurement.
Key Highlights
- Fully equipped commercial kitchen
- Established bakery operating systems
- Recipes associated with Cupcake Mountain Cupcakery LLC
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
$14,038
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
5.10%
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%
$280,760
$280.8K
Cap Rate 7%
$200,543
$200.5K
Cap Rate 9%
$155,978
$156.0K
Market Conditions
NOI Build-Up for 1,000 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
$20.0K $20.04/SF
− Vacancy
−$1.3K −$1.32/SF
EGI
$18.7K $18.72/SF
− OpEx
−$4.7K −$4.68/SF
NOI
$14.0K $14.04/SF
Area
Gallatin County, MT
Vacancy
6.60%
Lease Rate
$20.04 /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%
$280,760
Cap Rate 7%
$200,543
Cap Rate 9%
$155,978
Alternative Uses
Best Use
Specialty Retail
$200.5K
$175.5K – $234.0K
NOI $14,038 @ 7.0% cap · market cap 5.10%
Second Best
Industrial
$148.4K
$129.8K – $173.1K
NOI $10,385 @ 7.0% cap · market cap 3.78%
Theoretical Best
Office A
$261.1K
$228.5K – $304.6K
NOI $18,278 @ 7.0% cap · market cap 6.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,877
Businesses Nearby
115k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 58%
Shops & Services 16%
Hotels & Casinos 13%
Apparel 9%
Starbucks
Dining
22,108 visits/mo
0.4 miles
Wendy's
Dining
20,895 visits/mo
0.3 miles
Kimpton Armory Hotel Bozeman
Hotels & Casinos
12,269 visits/mo
0.4 miles
City Brew Coffee
Dining
11,982 visits/mo
0.5 miles
Conoco
Shops & Services
7,236 visits/mo
0.1 miles
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 Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial kitchen - Existing bakery operations include established recipes, operating systems, and delivery capabilities.
Where is this commercial kitchen located?
The property is located at 218 & 220 7th Street Bozeman, MT.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: Fully equipped commercial kitchen; Established bakery operating systems; Recipes associated with Cupcake Mountain Cupcakery LLC
