Building Details

Year Built 1982

Listing Agency: PureWest Real Estate - Whitefish D***@DaveObe.com Show Phone

Listed By: David Oberlitner · License #RRE-RBS-LIC-14479

Source: Crexi

Added: Sep 23, 2023 Changed: Aug 21 Last Checked: Aug 14 at 5:58AM

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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 PureWest Real Estate - Whitefish

Investment Insights

Based on property information with market context.

This fully leased, 18,000 square foot light industrial building presents an investment opportunity with a reported +8.0% CAP Rate. The property consists of six units and is occupied by five tenants involved in cannabis-related businesses, including three grow operations, one edible manufacturer, and a testing laboratory. The sixth tenant is an injection molding plastics manufacturer. The building is supplied with electric power through six separately metered 75kVA (480V 3PH) services. According to the provided information, there are no applicable covenants and zoning regulations are limited to US Highway 93 Scenic Corridor Zoning. Financing options may include seller, third-party private, and bank financing. The property is located on US Highway 93 N in Olney, MT.

Key Highlights

• High CAP Rate: +8.0% return on investment.
• Fully Leased: Immediate income generation with all units occupied.
• Large Industrial Building: 18,000 square feet of 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

$108,297

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

6.19%

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%

$2,165,940 $2.2M

Cap Rate 7%

$1,547,100 $1.5M

Cap Rate 9%

$1,203,300 $1.2M

Market Conditions

NOI Build-Up for 18,000 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

$162.0K $9.00/SF

− Vacancy

−$7.3K −$0.41/SF

EGI

$154.7K $8.59/SF

− OpEx

−$46.4K −$2.58/SF

NOI

$108.3K $6.02/SF

Area

Flathead County, MT

Vacancy

4.50%

Lease Rate

$9.00 /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%

$2,165,940

Cap Rate 7%

$1,547,100

Cap Rate 9%

$1,203,300

Alternative Uses

Best Use

Industrial

$1.55M

$1.35M – $1.80M (±1% cap)

NOI $108,297 @ 7.0% cap · market cap 6.19%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$4.02M

$3.52M – $4.69M (±1% cap)

NOI $281,318 @ 7.0% cap · market cap 16.08%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Manufacturing properties

Location Intelligence

Trade Area within ½ mile

15

Businesses Nearby

Explore this area Business Placement

Demographics for 59927, MT

413

Population

180

Households

2.3

Avg Household Size

51

Median Age

43%

College-Educated

100%

High-School Grad

194.2 sq mi

ZIP Area

2

Density / Sq Mi

$58,750

Median Household Income

$33,611

Median Earnings

$528,200

Median Home Value

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Manufacturing property - Fully leased industrial building with cannabis-related and manufacturing tenants.

Where is this manufacturing property located?

The property is located at 6065 - 6073 US Highway 93 N Olney, MT.

What is the asking price?

The asking price for this property is $1,750,000.

What are key features of this property?

This property features: High CAP Rate: +8.0% return on investment.; Fully Leased: Immediate income generation with all units occupied.; Large Industrial Building: 18,000 square feet of space.