Retail Building on Corner
For Sale
$1,049,000
Pending
607 W Custer Avenue, Helena, MT 59601
Retail building for sale with high traffic and ample parking.
Property Size6,019 SF
Lot Size0.99 Acres
Days on Market151
Property Features for 607 W Custer Avenue
General Information
Standard status
Pending
Size
6,019 SF
Total Parking Spaces
43
Lot size
0.99 Acres
Property subtype
Commercial
Zoning
Retail, Cloverview PUD
Taxes and HOA fees
Annual Taxes
$19,134
Building Details
Building Size
6,019 SF
Year Built
1972
Units
2
Listing Agency:
Coldwell Banker Commercial Green & Green
(406) 465-9936
Listed By:
Tyler D Warne · License #98724
(406) 465-9936
Source:
Avatarrealtymt
Added: Mar 27
Changed: Aug 23
Last Checked: Aug 13 at 10:48AM
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 6,000-square-foot retail building is situated on a corner lot on West Custer Avenue, which experiences a daily traffic volume of 15,000 vehicles. The property, nearly an acre in size, features a significant amount of parking and front landscaping. The building is divided into two halves, each currently rented with near-term leases. The current tenants include a fitness center and a daycare. Both units have a mostly open layout, with bathrooms, closets, and a private office. The lighted corner location facilitates easy travel in all directions. Improvements made during the seller's ownership include a new roof, new HVAC system, and added landscaping. The property is suitable for running a business or as a stable investment.
Key Highlights
- High‑traffic corner location on West Custer Avenue (15,000 vehicles per day).
- Large lot size (nearly an acre) with ample parking and landscaping.
- 6,000 square foot building suitable for owner‑occupancy or investment.
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
$78,221
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
7.46%
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%
$1,564,420
$1.6M
Cap Rate 7%
$1,117,443
$1.1M
Cap Rate 9%
$869,122
$869.1K
Market Conditions
NOI Build-Up for 6,000 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
$115.2K $19.20/SF
− Vacancy
−$3.5K −$0.58/SF
EGI
$111.7K $18.62/SF
− OpEx
−$33.5K −$5.59/SF
NOI
$78.2K $13.04/SF
Area
Lewis and Clark County, MT
Vacancy
3.00%
Lease Rate
$19.20 /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%
$1,564,420
Cap Rate 7%
$1,117,443
Cap Rate 9%
$869,122
Alternative Uses
Best Use
Retail
$1.12M
$977.8K – $1.30M
NOI $78,221 @ 7.0% cap · market cap 7.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.30M
$1.14M – $1.52M
NOI $91,238 @ 7.0% cap · market cap 8.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
481
Businesses Nearby
130k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 36%
Shops & Services 31%
Home Improvements & Furnishings 30%
Apparel 3%
Murdoch's Ranch & Home Supply
Home Improvements & Furnishings
37,513 visits/mo
0.4 miles
McDonald's
Dining
33,454 visits/mo
0.5 miles
MacKenzie River Pizza Co.
Dining
13,360 visits/mo
0.5 miles
Conoco
Shops & Services
12,374 visits/mo
0.5 miles
Cenex
Shops & Services
11,726 visits/mo
0.1 miles
Demographics for 59601, MT
30,848
Population
15,937
Households
1.9
Avg Household Size
41
Median Age
51%
College-Educated
96%
High-School Grad
130.2 sq mi
ZIP Area
237
Density / Sq Mi
$70,502
Median Household Income
$44,000
Median Earnings
$1,023
Median Rent
$355,000
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?
Retail space - Retail building for sale with high traffic and ample parking.
Where is this retail space located?
The property is located at 607 W Custer Avenue Helena, MT.
What is the asking price?
The asking price for this property is $1,049,000.
What are key features of this property?
This property features: High‑traffic corner location on West Custer Avenue (15,000 vehicles per day).; Large lot size (nearly an acre) with ample parking and landscaping.; 6,000 square foot building suitable for owner‑occupancy or investment.
