Two-Story Office Building with
For Sale
$2,500,000
243 Pegasus Drive, Bozeman, MT 59718
Two-story office building with private offices, open work areas, and a recording studio for flexible tenant or owner-operator use.
Property Size10,104 SF
Lot Size0.84 Acres
Price / SF$247.43
Days on Market149
Property Features for 243 Pegasus Drive
General Information
Standard status
Active
Size
10,104 SF
Lot size
0.84 Acres
Property subtype
Commercial
Zoning
C
Additional Details
Sprinkler System
Yes
Office Units
21
Taxes and HOA fees
Annual Taxes
$18,957
Building Details
Building Size
10,104 SF
Year Built
2006
Stories
2
Listing Agency:
Resolute Roots Realty
(406) 407-2520
Listed By:
Ashley Keller
(406) 407-2520
Source:
Outlaw
Added: Mar 25
Changed: Aug 19
Last Checked: Aug 20 at 4:21AM
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 Resolute Roots Realty
Investment Insights
Based on property information with market context.
Built in 2006, this 10,104 SF two-story office building sits on 1.84 acres in the Galactic Park Subdivision of Four Corners. The interior includes 21 private offices, four open work areas, a conference room, break room, recording studio, green room, and five restrooms, supported by mechanical and storage rooms. A welcoming reception area anchors the main entrance, while an elevator and two stairwells provide second-floor access.
The property is set in a quiet, low-traffic setting near the Gallatin River and is surrounded by high-end homes, offering a more relaxed alternative to busier commercial corridors. Nearby employers include Zoot Enterprises, Mesa Labs, and Wildfire Defense Systems, which may be convenient for office users in related industries.
For tenants and buyers seeking a flexible office configuration, the mix of private offices, open space, and dedicated studio rooms supports a range of professional uses, including general office operations and creative or recording-focused requirements. The building is serviced by Four Corners Water & Sewer and is equipped with a fire suppression system. The property is reported to be in good condition with no known deferred maintenance, with mechanical and storage support spaces already in place.
The property is set in a quiet, low-traffic setting near the Gallatin River and is surrounded by high-end homes, offering a more relaxed alternative to busier commercial corridors. Nearby employers include Zoot Enterprises, Mesa Labs, and Wildfire Defense Systems, which may be convenient for office users in related industries.
For tenants and buyers seeking a flexible office configuration, the mix of private offices, open space, and dedicated studio rooms supports a range of professional uses, including general office operations and creative or recording-focused requirements. The building is serviced by Four Corners Water & Sewer and is equipped with a fire suppression system. The property is reported to be in good condition with no known deferred maintenance, with mechanical and storage support spaces already in place.
Key Highlights
- 10,104 SF two‑story office building on 0.84 acres, built in 2006
- Layout includes 21 private offices, four open work areas, and a welcoming reception area
- Conference room and break room plus recording studio and green room 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
$148,635
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
5.95%
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%
$2,972,700
$3.0M
Cap Rate 7%
$2,123,357
$2.1M
Cap Rate 9%
$1,651,500
$1.7M
Market Conditions
NOI Build-Up for 10,104 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
$212.2K $21.00/SF
− Vacancy
−$14.0K −$1.39/SF
EGI
$198.2K $19.61/SF
− OpEx
−$49.5K −$4.90/SF
NOI
$148.6K $14.71/SF
Area
Gallatin County, MT
Vacancy
6.60%
Lease Rate
$21.00 /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%
$2,972,700
Cap Rate 7%
$2,123,357
Cap Rate 9%
$1,651,500
Alternative Uses
Best Use
Office B
$2.12M
$1.86M – $2.48M
NOI $148,635 @ 7.0% cap · market cap 5.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.64M
$2.31M – $3.08M
NOI $184,685 @ 7.0% cap · market cap 7.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
21
Office units
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
101
Businesses Nearby
Explore this area
Business Placement
Demographics for 59718, MT
43,831
Population
19,765
Households
2.2
Avg Household Size
33
Median Age
57%
College-Educated
97%
High-School Grad
164.5 sq mi
ZIP Area
266
Density / Sq Mi
$91,852
Median Household Income
$44,915
Median Earnings
$1,748
Median Rent
$579,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office building with private offices, open work areas, and a recording studio for flexible tenant or owner-operator use.
Where is this office building located?
The property is located at 243 Pegasus Drive Bozeman, MT.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 10,104 SF two‑story office building on 0.84 acres, built in 2006; Layout includes 21 private offices, four open work areas, and a welcoming reception area; Conference room and break room plus recording studio and green room included
