Historic Warehouse with Mixed-Use
For Sale
$950,000
725 E Cottonwood Street, Bozeman, MT 59715
CommercialSale, Bozeman, MT
Property Size4,875 SF
Lot Size0.26 Acres
Price / SF$194.87
Days on Market552
Property Features for 725 E Cottonwood Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
NEHMU
Zoning description
NEHMU
Subdivision
Northern Pacific Addition
Directions
East Cottonwood Street intersects with Plum Avenue
Standard status
Active
APN
RGH3151
Size
4,875 SF
Lot size
0.26 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
NORTHERN PACIFIC ADD, S06, T02 S, R06 E, BLOCK 101, LOT 9 - 11, TRACT 5 OF LOTS
Tax Annual Amount
6046
Legal Description
NORTHERN PACIFIC ADD, S06, T02 S, R06 E, BLOCK 101, LOT 9 - 11, TRACT 5 OF LOTS
Building Details
Year built
1895
Listing Agency:
Starner Commercial Real Estate
(406) 586-0302
Listed By:
Lauren John · License #RBS-52525
(406) 600-2927
Added: Feb 14, 2025
Changed: Aug 19
Last Checked: Aug 20 at 10:06PM
MLS# 400128
Copyright © 2026 Big Sky Country MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This historic warehouse contains 4,875 square feet on approximately 11,500 square feet of land. Constructed in 1895, the property is currently leased on a month-to-month basis, offering existing occupancy while future plans are evaluated. The site carries NEHMU zoning, identified as Northeast Historic Mixed-Use, with potential applications that include residential, commercial, retail, office, restaurant, and adaptive reuse, subject to verification of applicable regulations.
Preliminary architectural concept drawings are available, but they have not been entitled and do not represent approved development plans. The property is one block from Wild Crumb Bakery, Treeline Coffee, and Fink's Deli. Nearby redevelopment initiatives include Bronkens/Cloverleaf, Wallace Works, North Ida/East Cottonwood, and Block 104. The adjacent 704 Front Street property is also offered separately and could create an approximately 18,600 SF combined development site.
Preliminary architectural concept drawings are available, but they have not been entitled and do not represent approved development plans. The property is one block from Wild Crumb Bakery, Treeline Coffee, and Fink's Deli. Nearby redevelopment initiatives include Bronkens/Cloverleaf, Wallace Works, North Ida/East Cottonwood, and Block 104. The adjacent 704 Front Street property is also offered separately and could create an approximately 18,600 SF combined development site.
Key Highlights
- 4,875 SF historic warehouse built in 1895
- Approximately 11,500 SF of land, or 0.26 acres
- NEHMU zoning: Northeast Historic Mixed‑Use
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
$61,473
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
6.47%
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%
$1,229,460
$1.2M
Cap Rate 7%
$878,186
$878.2K
Cap Rate 9%
$683,033
$683.0K
Market Conditions
NOI Build-Up for 4,875 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
$73.1K $15.00/SF
− Vacancy
−$804 −$0.17/SF
EGI
$72.3K $14.83/SF
− OpEx
−$10.8K −$2.23/SF
NOI
$61.5K $12.61/SF
Area
Gallatin County, MT
Vacancy
1.10%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
15.00%
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%
$1,229,460
Cap Rate 7%
$878,186
Cap Rate 9%
$683,033
Alternative Uses
Best Use
Warehouse
$878.2K
$768.4K – $1.02M
NOI $61,473 @ 7.0% cap · market cap 6.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.27M
$1.11M – $1.49M
NOI $89,107 @ 7.0% cap · market cap 9.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,504
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59715, MT
37,286
Population
17,116
Households
2.2
Avg Household Size
30
Median Age
68%
College-Educated
98%
High-School Grad
294.9 sq mi
ZIP Area
126
Density / Sq Mi
$85,000
Median Household Income
$31,646
Median Earnings
$1,376
Median Rent
$755,300
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- MPS — 805 N Ida Ave, Bozeman, MT 59715
- A-1 Security Storage — 1623 N Rouse Ave, Bozeman, MT 59715
- AG Depot — 24 N Wallace Ave, Bozeman, MT 59715
- Mr. T's Towing & Repair — 411 Bond St, Bozeman, MT 59715
- Move It! — 205 Haggerty Ln # 150, Bozeman, MT 59715
Frequently Asked Questions
What type of property is this?
Warehouse - Month-to-month occupancy provides interim use within NEHMU-zoned property.
Where is this warehouse located?
The property is located at 725 E Cottonwood Street Bozeman, MT.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 4,875 SF historic warehouse built in 1895; Approximately 11,500 SF of land, or 0.26 acres; NEHMU zoning: Northeast Historic Mixed‑Use
