Listing Agency: H BAR S Real Estate j***@hbars.com Show Phone

Listed By: Jennifer Crawford-O'Shea · License #RRE-RBS-LIC-119058 Show Phone

Source: Patschindele

Added: Jul 26 Changed: Aug 28 Last Checked: Aug 28 at 12:58PM

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Investment Insights

Based on property information with market context.

This established restaurant occupies 2,908 square feet at 22 East Rosebud Road in Roscoe, Montana. The business includes its furniture, fixtures, and equipment, along with a full liquor license, supporting a complete operating setup for the next owner.

The property sits within a local ranching community and serves travelers moving through the area toward Yellowstone National Park and over Beartooth Pass. Red Lodge is 19 miles east. Local beef sourced from nearby ranchers is part of the restaurant’s identity, and the operation has been family owned and operated for 21 years.

Key Highlights

• 2,908‑square‑foot restaurant at 22 East Rosebud Road
• Full liquor license included
• Furniture, fixtures, and equipment included

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

$34,626

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

4.07%

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%

$692,520 $692.5K

Cap Rate 7%

$494,657 $494.7K

Cap Rate 9%

$384,733 $384.7K

Market Conditions

NOI Build-Up for 2,908 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

$47.1K $16.20/SF

− Vacancy

−$942 −$0.32/SF

EGI

$46.2K $15.88/SF

− OpEx

−$11.5K −$3.97/SF

NOI

$34.6K $11.91/SF

Area

Carbon County, MT

Vacancy

2.00%

Lease Rate

$16.20 /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%

$692,520

Cap Rate 7%

$494,657

Cap Rate 9%

$384,733

Alternative Uses

Best Use

Specialty Retail

$494.7K

$432.8K – $577.1K (±1% cap)

NOI $34,626 @ 7.0% cap · market cap 4.07%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$634.5K

$555.2K – $740.3K (±1% cap)

NOI $44,416 @ 7.0% cap · market cap 5.23%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grizzly Bar Restaurant

Lease Details

Turnkey business

Opportunity

Yes

Liquor license

Location Intelligence

Trade Area within ½ mile

9

Businesses Nearby

Explore this area Business Placement

Demographics for 59071, MT

81

Population

220

Households

0.4

Avg Household Size

63

Median Age

20%

College-Educated

95%

High-School Grad

93.1 sq mi

ZIP Area

1

Density / Sq Mi

$71,250

Median Household Income

$30,000

Median Earnings

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Established restaurant operation with furniture, fixtures, equipment, and a full liquor license included.

Where is this conventional restaurant located?

The property is located at 22 East Rosebud Road Roscoe, MT.

What is the asking price?

The asking price for this property is $850,000.

What are key features of this property?

This property features: 2,908‑square‑foot restaurant at 22 East Rosebud Road; Full liquor license included; Furniture, fixtures, and equipment included