Open-Span Retail and Apartment
For Sale
$1,500,000
302 /304 2nd Ave W, Kalispell, MT 59901
Open-span ground floor retail with basement storage and three upstairs apartments with private entrances.
Property Size12,000 SF
Price / SF$125
Days on Market47
Property Features for 302 /304 2nd Ave W
General Information
Standard status
Active
Size
12,000 SF
Additional Details
Multifamily Units
3
Building Details
Year Built
1900
Listing Agency:
Keller Williams Realty Northwest Montana
Listed By:
Ted Dykstra Jr · License #RRE-BRO-LIC-10713
(406) 249-8345
Source:
Performance-realestate
Added: Jul 21
Changed: Sep 2
Last Checked: Sep 5 at 10:56AM
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 Keller Williams Realty Northwest Montana
Investment Insights
Based on property information with market context.
This mixed-use building features an open-span ground floor designed for retail concepts, with basement space limited to storage. Upstairs includes three apartments with private entrances: two studio units and one 3-bedroom, 1-bath owner’s unit. The property has been tastefully remodeled and updated, and the current tenant setup is described as one that tenants would be happy to continue.
Located on a corner lot with both on- and off-street parking, the building sits across the street from Black Rifle Coffee and the Downtown Post Office. The remarks also note nearby businesses including Sykes Diner and a barber shop, as well as proximity to banks, shopping, and restaurants. An alley shipping and receiving door is included, along with overnight parking for tenants.
The sale is for the real estate only; the business is not included.
Located on a corner lot with both on- and off-street parking, the building sits across the street from Black Rifle Coffee and the Downtown Post Office. The remarks also note nearby businesses including Sykes Diner and a barber shop, as well as proximity to banks, shopping, and restaurants. An alley shipping and receiving door is included, along with overnight parking for tenants.
The sale is for the real estate only; the business is not included.
Key Highlights
- 12,000 SF Kalispell commercial building on a corner lot across from Black Rifle Coffee and the Downtown Post Office
- Open‑span ground floor retail space designed for flexible retail layouts
- Basement is storage only
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
$120,330
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
8.02%
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%
$2,406,600
$2.4M
Cap Rate 7%
$1,719,000
$1.7M
Cap Rate 9%
$1,337,000
$1.3M
Market Conditions
NOI Build-Up for 12,000 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
$180.0K $15.00/SF
− Vacancy
−$8.1K −$0.68/SF
EGI
$171.9K $14.33/SF
− OpEx
−$51.6K −$4.30/SF
NOI
$120.3K $10.03/SF
Area
Flathead County, MT
Vacancy
4.50%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
30.00%
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%
$2,406,600
Cap Rate 7%
$1,719,000
Cap Rate 9%
$1,337,000
Alternative Uses
Best Use
Retail
$2.43M
$2.13M – $2.84M
NOI $170,226 @ 7.0% cap · market cap 11.35%
Second Best
Multifamily LT 5
$1.72M
$1.50M – $2.01M
NOI $120,330 @ 7.0% cap · market cap 8.02%
Theoretical Best
Office A
$2.68M
$2.34M – $3.13M
NOI $187,546 @ 7.0% cap · market cap 12.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
2,123
Businesses Nearby
Explore this area
Business Placement
Demographics for 59901, MT
57,900
Population
25,154
Households
2.3
Avg Household Size
40
Median Age
33%
College-Educated
96%
High-School Grad
468.8 sq mi
ZIP Area
124
Density / Sq Mi
$70,391
Median Household Income
$38,073
Median Earnings
$1,052
Median Rent
$417,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Open-span ground floor retail with basement storage and three upstairs apartments with private entrances.
Where is this mixed-use property located?
The property is located at 302 /304 2nd Ave W Kalispell, MT.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 12,000 SF Kalispell commercial building on a corner lot across from Black Rifle Coffee and the Downtown Post Office; Open‑span ground floor retail space designed for flexible retail layouts; Basement is storage only
