Drive-Through Restaurant
For Sale
$495,000
Pending
501 S Excelsior Ave, Butte, MT 59701
Restaurant building with drive-through window, dining room, fully equipped kitchen, and cold storage.
Property Size1,864 SF
Days on Market211
Property Features for 501 S Excelsior Ave
General Information
Standard status
Pending
Size
1,864 SF
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$4,974
Listing Agency:
Venture West Realty
(406) 522-9378
Listed By:
Scott Thompson · License #BRO-94797
(406) 593-1057
Source:
Exprealty
Added: Feb 6
Changed: Sep 3
Last Checked: Sep 5 at 9:42AM
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 Venture West Realty
Investment Insights
Based on property information with market context.
A 1,864-square-foot restaurant building offered for sale with building and equipment included. The layout supports food service operations and includes a drive-through window, an inviting dining room, and a fully equipped kitchen with a prep area, along with ample cold storage. The property has undergone multiple upgrades and is currently occupied by La Sirena, a Mexican restaurant.
Located at 501 S Excelsior Ave in Uptown Butte, the property is described as being just minutes from Montana Tech and St. James Hospital, supporting convenient day-to-day access.
Designed for efficient service flow, the building can be suited for an owner-operator concept or a new food-focused tenant looking for a turn-key setup with in-place restaurant infrastructure.
Located at 501 S Excelsior Ave in Uptown Butte, the property is described as being just minutes from Montana Tech and St. James Hospital, supporting convenient day-to-day access.
Designed for efficient service flow, the building can be suited for an owner-operator concept or a new food-focused tenant looking for a turn-key setup with in-place restaurant infrastructure.
Key Highlights
- 1,864 SF restaurant building in Uptown Butte, currently occupied by La Sirena
- Drive‑through window for quick service and customer access
- Dining room plus fully equipped kitchen and prep area designed for food service
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
$22,899
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
4.63%
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%
$457,980
$458.0K
Cap Rate 7%
$327,129
$327.1K
Cap Rate 9%
$254,433
$254.4K
Market Conditions
NOI Build-Up for 1,864 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
$31.3K $16.80/SF
− Vacancy
−$783 −$0.42/SF
EGI
$30.5K $16.38/SF
− OpEx
−$7.6K −$4.10/SF
NOI
$22.9K $12.29/SF
Area
Silver Bow County, MT
Vacancy
2.50%
Lease Rate
$16.80 /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%
$457,980
Cap Rate 7%
$327,129
Cap Rate 9%
$254,433
Alternative Uses
Best Use
Specialty Retail
$327.1K
$286.2K – $381.7K
NOI $22,899 @ 7.0% cap · market cap 4.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$406.2K
$355.5K – $474.0K
NOI $28,437 @ 7.0% cap · market cap 5.74%
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
693
Businesses Nearby
Explore this area
Business Placement
Demographics for 59701, MT
33,937
Population
16,834
Households
2
Avg Household Size
42
Median Age
27%
College-Educated
94%
High-School Grad
509.7 sq mi
ZIP Area
67
Density / Sq Mi
$56,799
Median Household Income
$34,793
Median Earnings
$811
Median Rent
$219,200
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?
Drive through restaurant - Restaurant building with drive-through window, dining room, fully equipped kitchen, and cold storage.
Where is this drive through restaurant located?
The property is located at 501 S Excelsior Ave Butte, MT.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: 1,864 SF restaurant building in Uptown Butte, currently occupied by La Sirena; Drive‑through window for quick service and customer access; Dining room plus fully equipped kitchen and prep area designed for food service
