Gas Station/Retail Redevelopment
For Sale
$2,195,000
523 Hilltop Road, Billings, MT 59105
6,746 SF gas station/retail building on 67,947 SF lot.
Property Size6,746 SF
Lot Size1.56 Acres
Price / SF$325.38
Days on Market158
Property Features for 523 Hilltop Road
General Information
Standard status
Active
Size
6,746 SF
Lot size
1.56 Acres
Property subtype
Retail
Building Details
Building Size
6,746 SF
Year Built
1996
Listing Agency:
NAI Business Properties
Listed By:
Ethan Kanning · License #RRE-RBS-LIC-45682
(406) 672-0435
Source:
Naiglobal
Added: Apr 1
Changed: Aug 27
Last Checked: Sep 5 at 6:21AM
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 NAI Business Properties
Investment Insights
Based on property information with market context.
The subject property features 6,746 square feet of retail space, situated on a 67,947 square foot lot. The retail space is divided into a 4,120 square foot convenience store, which includes 2,936 square feet of retail space and 1,184 square feet of storage and office space. Additionally, there is a 1,250 square foot restaurant space and a 1,376 square foot casino. The property also includes 1,110 square feet of basement space, previously used for lube shop operations with vehicle access, though this area is not included in the total building square footage. The basement has an estimated ceiling height of 7 feet. The seller is open to removing the tanks and canopies at their own expense. The buyer has the option to continue the Cenex fuel contract, or the seller can terminate it at closing if desired by the buyer. The casino is currently owner-operated, and the seller has a strong preference for a sale-leaseback arrangement on the casino space. The property is available for gas user or retail redevelopment.
Key Highlights
- 6,746 SF Gas Station/Retail Building on a 67,947 SF Lot suitable for Gas User or Retail Redevelopment.
- Includes a 4,120 SF Owner Operated C Store (2,936 SF Retail + 1,184 SF storage/office).
- Features 1,250 SF of Restaurant space.
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
$80,325
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
3.66%
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%
$1,606,500
$1.6M
Cap Rate 7%
$1,147,500
$1.1M
Cap Rate 9%
$892,500
$892.5K
Market Conditions
NOI Build-Up for 6,746 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
$109.3K $16.20/SF
− Vacancy
−$2.2K −$0.32/SF
EGI
$107.1K $15.88/SF
− OpEx
−$26.8K −$3.97/SF
NOI
$80.3K $11.91/SF
Area
Billings, MT
Vacancy
2.00%
Lease Rate
$16.20 /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%
$1,606,500
Cap Rate 7%
$1,147,500
Cap Rate 9%
$892,500
Alternative Uses
Best Use
Specialty Retail
$1.15M
$1.00M – $1.34M
NOI $80,325 @ 7.0% cap · market cap 3.66%
Second Best
Retail
$986.6K
$863.3K – $1.15M
NOI $69,062 @ 7.0% cap · market cap 3.15%
Theoretical Best
Office A
$1.47M
$1.29M – $1.72M
NOI $103,036 @ 7.0% cap · market cap 4.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
511
Businesses Nearby
234k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 48%
Shops & Services 26%
Groceries 19%
Home Improvements & Furnishings 3%
Albertsons
Groceries
45,635 visits/mo
0.3 miles
Wendy's
Dining
25,943 visits/mo
0.5 miles
Taco Bell
Dining
23,524 visits/mo
0.2 miles
Town Pump
Shops & Services
19,607 visits/mo
0.5 miles
SONIC Drive In
Dining
15,369 visits/mo
0.3 miles
Demographics for 59105, MT
33,310
Population
14,198
Households
2.3
Avg Household Size
37
Median Age
30%
College-Educated
96%
High-School Grad
95.9 sq mi
ZIP Area
347
Density / Sq Mi
$74,572
Median Household Income
$44,359
Median Earnings
$1,261
Median Rent
$314,900
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?
Gas station - 6,746 SF gas station/retail building on 67,947 SF lot.
Where is this gas station located?
The property is located at 523 Hilltop Road Billings, MT.
What is the asking price?
The asking price for this property is $2,195,000.
What are key features of this property?
This property features: 6,746 SF Gas Station/Retail Building on a 67,947 SF Lot suitable for Gas User or Retail Redevelopment.; Includes a **4,120 SF Owner Operated C Store** (2,936 SF Retail + 1,184 SF storage/office).; Features 1,250 SF of Restaurant space.
