Historic Warehouse
For Sale
$1,950,000
725 E Cottonwood Street & 704 Front Street, Bozeman, MT 59715
CommercialSale, Bozeman, MT
Property Size8,275 SF
Lot Size0.43 Acres
Price / SF$235.65
Days on Market553
Property Features for 725 E Cottonwood Street & 704 Front Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
NEHMU
Zoning description
NEHMU
Subdivision
Northern Pacific Addition
Directions
East Cottonwood intersects with Plum Avenue
Standard status
Active
APN
RGH3151
Size
8,275 SF
Lot size
0.43 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
NORTHERN PACIFIC ADD, S06, T02 S, R06 E, BLOCK 101, TRACT 1 PLAT C-23-A27 LOTS 9-11 & VAC ST, TRACT 5 OF LOTS
Tax Annual Amount
13142
Legal Description
NORTHERN PACIFIC ADD, S06, T02 S, R06 E, BLOCK 101, TRACT 1 PLAT C-23-A27 LOTS 9-11 & VAC ST, TRACT 5 OF LOTS
Utilities
Sewer type
Public Sewer
Water source
Public
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 21 at 2:06AM
MLS# 399646
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 offering combines a historic warehouse with an adjacent renovated duplex on two separately deeded parcels in Bozeman. The warehouse contains 4,875 square feet and was built in 1895; it is currently leased month-to-month. The second parcel includes the renovated duplex, which is fully leased. Public water and public sewer serve the property.
NEHMU zoning supports consideration of residential, commercial, retail, restaurant, office, and adaptive reuse applications, subject to independent verification of permitted uses and development requirements. Preliminary architectural concepts for the warehouse parcel are illustrative only and have not been entitled. The property is located at 725 E. Cottonwood Street and 704 Front Street, one block from Wild Crumb Bakery, Treeline Coffee, and Fink's Deli.
NEHMU zoning supports consideration of residential, commercial, retail, restaurant, office, and adaptive reuse applications, subject to independent verification of permitted uses and development requirements. Preliminary architectural concepts for the warehouse parcel are illustrative only and have not been entitled. The property is located at 725 E. Cottonwood Street and 704 Front Street, one block from Wild Crumb Bakery, Treeline Coffee, and Fink's Deli.
Key Highlights
- 4,875 SF historic warehouse built in 1895
- Two separately deeded parcels at 725 E. Cottonwood Street and 704 Front Street
- Renovated duplex on the adjacent parcel is fully leased
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
$104,346
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
5.35%
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%
$2,086,920
$2.1M
Cap Rate 7%
$1,490,657
$1.5M
Cap Rate 9%
$1,159,400
$1.2M
Market Conditions
NOI Build-Up for 8,275 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
$124.1K $15.00/SF
− Vacancy
−$1.4K −$0.17/SF
EGI
$122.8K $14.83/SF
− OpEx
−$18.4K −$2.23/SF
NOI
$104.3K $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%
$2,086,920
Cap Rate 7%
$1,490,657
Cap Rate 9%
$1,159,400
Alternative Uses
Best Use
Warehouse
$1.49M
$1.30M – $1.74M
NOI $104,346 @ 7.0% cap · market cap 5.35%
Second Best
Multifamily LT 5
$1.33M
$1.17M – $1.55M
NOI $93,275 @ 7.0% cap · market cap 4.78%
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $151,254 @ 7.0% cap · market cap 7.76%
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.
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Frequently Asked Questions
What type of property is this?
Warehouse - Historic warehouse component with NEHMU zoning and adjacent renovated duplex across two separately deeded parcels.
Where is this warehouse located?
The property is located at 725 E Cottonwood Street & 704 Front Street Bozeman, MT.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: 4,875 SF historic warehouse built in 1895; Two separately deeded parcels at 725 E. Cottonwood Street and 704 Front Street; Renovated duplex on the adjacent parcel is fully leased
