Building Details

Year Built 1995

Listing Agency: Threshold Real Estate, Inc

Listed By: Ethan Clum · License #RRE-RBS-LIC-45219

Source: Crexi

Added: Jun 10 Changed: Aug 14 Last Checked: Aug 21 at 6:16AM

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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 Threshold Real Estate, Inc

Investment Insights

Based on property information with market context.

This ski-town hospitality property is offered for sale as a combined motel, bar and restaurant, with an on-site fuel station. The motel features 15 fully furnished guest rooms and an outdoor spa. The property also includes a fully equipped bar and kitchen, supporting on-site food and beverage operations.

The business is located approximately 9 miles from Showdown Ski Area in Neihart, MT, at 320 N Main Street. The on-site fuel offering is described as the only fuel for many miles.

Presented as a turnkey operation for new ownership, the property is positioned to serve year-round visitors, including skiers and snowboarders, snowmobilers, motorcyclists, and mountain adventurers.

Key Highlights

• Motel built in 1995 with 15 fully furnished guest rooms
• On‑site bar and fully equipped kitchen for guest and public service
• Outdoor spa on the property

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

$82,511

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

9.18%

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%

$1,650,220 $1.7M

Cap Rate 7%

$1,178,729 $1.2M

Cap Rate 9%

$916,789 $916.8K

Market Conditions

NOI Build-Up for 7,540 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

$122.1K $16.20/SF

− Vacancy

−$4.3K −$0.57/SF

EGI

$117.9K $15.63/SF

− OpEx

−$35.4K −$4.69/SF

NOI

$82.5K $10.94/SF

Area

Cascade County, MT

Vacancy

3.50%

Lease Rate

$16.20 /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%

$1,650,220

Cap Rate 7%

$1,178,729

Cap Rate 9%

$916,789

Alternative Uses

Best Use

Specialty Retail

$1.47M

$1.28M – $1.71M (±1% cap)

NOI $102,716 @ 7.0% cap · market cap 11.43%

Second Best

Retail

$1.18M

$1.03M – $1.38M (±1% cap)

NOI $82,511 @ 7.0% cap · market cap 9.18%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Motels

Suggested Use

Top Pick (Bike/Boat/Book/etc) Store Grocery & Convenience Store Food Market Restaurant Department Store Bar & Pub

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

26

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 59465, MT

62

Population

150

Households

0.4

Avg Household Size

55

Median Age

19%

College-Educated

100%

High-School Grad

90.1 sq mi

ZIP Area

1

Density / Sq Mi

$31,500

Median Earnings

$205,600

Median Home Value

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?

Motel - For sale motel with 15 furnished rooms, a bar and kitchen, outdoor spa, and an on-site fuel station.

Where is this motel located?

The property is located at 320 N Main Street Neihart, MT.

What is the asking price?

The asking price for this property is $899,000.

What are key features of this property?

This property features: Motel built in 1995 with 15 fully furnished guest rooms; On‑site bar and fully equipped kitchen for guest and public service; Outdoor spa on the property