Day Care Center Building with Preschool
For Sale
Contact for pricing
502 W Custer Ave, Helena, MT 59602
Well-maintained day care building currently operating as a preschool with a flexible layout and four private offices.
Property Size2,880 SF
Price / SF$204.51
Days on Market414
Property Features for 502 W Custer Ave
General Information
Standard status
Active
Size
2,880 SF
Property subtype
RETAIL
Listing Agency:
Coldwell Banker Commercial | Green & Green
(406) 442-1736
Listed By:
Greg Zeller · License #109309
(406) 439-2939
Source:
Moodyscre
Added: Jul 29, 2025
Changed: Sep 12
Last Checked: Sep 14 at 10:32AM
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 Coldwell Banker Commercial | Green & Green
Investment Insights
Based on property information with market context.
This professional, well-maintained day care center is currently used as a preschool, and it includes a flexible floor plan with four private offices. The building is described as having once been a private residence, and it offers a practical setup for an on-site program while supporting multiple interior uses.
The property sits along a high-traffic street near a traffic light, helping provide convenient in-and-out access. It is positioned near retail shops, restaurants, schools, and Bill Roberts Golf Course, and it is about 2 miles from Downtown Helena.
Outside, the yard has an underground sprinkler system, supporting ongoing curb appeal. The property is also described as having plenty of parking. Total building size is 2,880 square feet.
The property sits along a high-traffic street near a traffic light, helping provide convenient in-and-out access. It is positioned near retail shops, restaurants, schools, and Bill Roberts Golf Course, and it is about 2 miles from Downtown Helena.
Outside, the yard has an underground sprinkler system, supporting ongoing curb appeal. The property is also described as having plenty of parking. Total building size is 2,880 square feet.
Key Highlights
- Currently operating as a preschool with a flexible floor plan
- Includes four private offices
- Along a high‑traffic street near a traffic light for convenient access
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
$30,845
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
5.24%
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%
$616,900
$616.9K
Cap Rate 7%
$440,643
$440.6K
Cap Rate 9%
$342,722
$342.7K
Market Conditions
NOI Build-Up for 2,880 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
$48.4K $16.80/SF
− Vacancy
−$7.3K −$2.52/SF
EGI
$41.1K $14.28/SF
− OpEx
−$10.3K −$3.57/SF
NOI
$30.8K $10.71/SF
Area
Lewis and Clark County, MT
Vacancy
15.00%
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%
$616,900
Cap Rate 7%
$440,643
Cap Rate 9%
$342,722
Alternative Uses
Best Use
Office B
$440.6K
$385.6K – $514.1K
NOI $30,845 @ 7.0% cap · market cap 5.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$625.6K
$547.4K – $729.9K
NOI $43,794 @ 7.0% cap · market cap 7.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
199
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59602, MT
29,390
Population
12,091
Households
2.4
Avg Household Size
42
Median Age
39%
College-Educated
94%
High-School Grad
524.3 sq mi
ZIP Area
56
Density / Sq Mi
$87,841
Median Household Income
$49,580
Median Earnings
$1,291
Median Rent
$369,800
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Similar Off Market Nearby
- Just Like Home — 2808 Villard Ave, Helena, MT 59601
- The Wiggle Room — 502 W Custer Ave, Helena, MT 59602
- The Wonder Years Daycare & Preschool LLC — 3108 McHugh Ln, Helena, MT 59601
- Angel Academy Daycare — 3108 McHugh Ln, Helena, MT 59602
- Haven Daycare & Preschool — 3108 McHugh Dr, Helena, MT 59602
Frequently Asked Questions
What type of property is this?
Day care center - Well-maintained day care building currently operating as a preschool with a flexible layout and four private offices.
Where is this day care center located?
The property is located at 502 W Custer Ave Helena, MT.
What is the asking price?
The asking price for this property is $589,000.
What are key features of this property?
This property features: Currently operating as a preschool with a flexible floor plan; Includes four private offices; Along a high‑traffic street near a traffic light for convenient access
