West Yellowstone Restaurant
For Sale
Contact for pricing
538 Madison Ave, West Yellowstone, MT 59758
Established restaurant near Yellowstone National Park for sale.
Property Size3,500 SF
Price / SF$214.29
Days on Market202
Property Features for 538 Madison Ave
General Information
Standard status
Active
Size
3,500 SF
Property subtype
Hospitality, Mixed Use, Multifamily
Zoning
Commercial
Investment Type
Owner/User
Net Operating Income
$263,000
Building Details
Year Renovated
2003
Buildings
1
Stories
2
Units
1
Listing Agency:
RE/MAX Community - Valley
Listed By:
Misty Jessup · License #MT RREBRO38618
Source:
Crexi
Added: Jan 27
Changed: Aug 8
Last Checked: Aug 8 at 6:32AM
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 RE/MAX Community - Valley
Investment Insights
Based on property information with market context.
This restaurant, located near Yellowstone National Park, is a vibrant and fast-paced establishment. It has consistently produced quality food, catering to families and tourists. The restaurant has been featured in travel magazines, received high online reviews, and earned multiple awards, including the Travelers Choice award in 2023 and 2024. Recent upgrades to the building include new carpet, new exterior paint, and upgraded customer bathrooms. The property size is 3500 square feet.
Key Highlights
- Established restaurant near Yellowstone National Park.
- Consistent production of quality food for families and tourists.
- Multiple awards including Travelers Choice in 2023 and 2024.
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
$49,133
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
6.55%
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%
$982,660
$982.7K
Cap Rate 7%
$701,900
$701.9K
Cap Rate 9%
$545,922
$545.9K
Market Conditions
NOI Build-Up for 3,500 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
$70.1K $20.04/SF
− Vacancy
−$4.6K −$1.32/SF
EGI
$65.5K $18.72/SF
− OpEx
−$16.4K −$4.68/SF
NOI
$49.1K $14.04/SF
Area
Gallatin County, MT
Vacancy
6.60%
Lease Rate
$20.04 /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%
$982,660
Cap Rate 7%
$701,900
Cap Rate 9%
$545,922
Alternative Uses
Best Use
Specialty Retail
$701.9K
$614.2K – $818.9K
NOI $49,133 @ 7.0% cap · market cap 6.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$913.9K
$799.7K – $1.07M
NOI $63,974 @ 7.0% cap · market cap 8.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
533
Businesses Nearby
18k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 90%
Hotels & Casinos 9%
Dining 1%
Exxon
Shops & Services
4,145 visits/mo
0.5 miles
Cenex
Shops & Services
3,646 visits/mo
0.4 miles
Phillips 66
Shops & Services
3,427 visits/mo
0.3 miles
Conoco
Shops & Services
2,220 visits/mo
0.4 miles
Sinclair
Shops & Services
1,624 visits/mo
0.2 miles
Demographics for 59758, MT
1,932
Population
1,695
Households
1.1
Avg Household Size
43
Median Age
32%
College-Educated
90%
High-School Grad
413.9 sq mi
ZIP Area
5
Density / Sq Mi
$59,750
Median Household Income
$32,439
Median Earnings
$1,050
Median Rent
$476,600
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Trappers Family Restaurant — 301 Madison Ave, West Yellowstone, MT 59758
- Blue Cloud House — 621 Firehole Ave, West Yellowstone, MT 59758
- Yellowstone — 250 S Canyon St, West Yellowstone, MT 59758
Frequently Asked Questions
What type of property is this?
Breakfast & diner - Established restaurant near Yellowstone National Park for sale.
Where is this breakfast & diner located?
The property is located at 538 Madison Ave West Yellowstone, MT.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Established restaurant near Yellowstone National Park.; Consistent production of quality food for families and tourists.; Multiple awards including Travelers Choice in 2023 and 2024.
