20-Unit Motel with Convenience
For Sale
$1,390,000
740 E Pike Avenue, Columbus, MT 59019
Hospitality property combines drive-up guest rooms with fuel service, retail space, and an on-site laundromat.
Property Size9,950 SF
Lot Size1.00 Acre
Price / SF$139.70
Days on Market39
Property Features for 740 E Pike Avenue
General Information
Standard status
Active
Size
9,950 SF
Lot size
1.00 Acre
Property subtype
CommercialSale
Property Condition
Severity
Repairs Needed
Evidence
A bit of renovation
Additional Details
Business Included
Yes
Road Access
Yes
Building Details
Year Built
1963
Abandoned
No
Listing Agency:
Parks Real Estate
(406) 780-1371
Listed By:
Joyce Kelley · License #RRE-BRO-LIC-6644
(406) 780-1371
Source:
Mymontanahomestead
Added: Jul 23
Changed: Aug 30
Last Checked: Aug 30 at 2:12AM
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 Parks Real Estate
Investment Insights
Based on property information with market context.
This hospitality property includes a 20-unit motel with drive-up rooms, a Conoco fuel station and convenience store, and a laundromat positioned behind the store. The property also includes adjoining vacant space connected to the convenience store, providing additional on-site commercial area. The motel was built in 1963, while the gas station has operated since 1922.
The 1-acre site is located along Main Street at 740 E Pike Avenue in Columbus, Montana. The property contains 9,950 square feet and combines lodging, fuel service, convenience retail, and laundry operations within one commercial setting. Its established mix of uses includes both operating businesses and vacant space associated with the store.
The 1-acre site is located along Main Street at 740 E Pike Avenue in Columbus, Montana. The property contains 9,950 square feet and combines lodging, fuel service, convenience retail, and laundry operations within one commercial setting. Its established mix of uses includes both operating businesses and vacant space associated with the store.
Key Highlights
- 20‑unit motel with classic drive‑up rooms
- 9,950‑square‑foot commercial property on 1 acre
- Conoco station and convenience store included
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
$118,475
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
8.52%
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%
$2,369,500
$2.4M
Cap Rate 7%
$1,692,500
$1.7M
Cap Rate 9%
$1,316,389
$1.3M
Market Conditions
NOI Build-Up for 9,950 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
$161.2K $16.20/SF
− Vacancy
−$3.2K −$0.32/SF
EGI
$158.0K $15.88/SF
− OpEx
−$39.5K −$3.97/SF
NOI
$118.5K $11.91/SF
Area
Stillwater County, MT
Vacancy
2.00%
Lease Rate
$16.20 /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%
$2,369,500
Cap Rate 7%
$1,692,500
Cap Rate 9%
$1,316,389
Alternative Uses
Best Use
Specialty Retail
$1.69M
$1.48M – $1.97M
NOI $118,475 @ 7.0% cap · market cap 8.52%
Second Best
Retail
$1.46M
$1.27M – $1.70M
NOI $101,863 @ 7.0% cap · market cap 7.33%
Theoretical Best
Office A
$2.17M
$1.90M – $2.53M
NOI $151,972 @ 7.0% cap · market cap 10.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
308
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59019, MT
4,047
Population
1,905
Households
2.1
Avg Household Size
46
Median Age
27%
College-Educated
92%
High-School Grad
306.8 sq mi
ZIP Area
13
Density / Sq Mi
$86,905
Median Household Income
$42,813
Median Earnings
$921
Median Rent
$352,900
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?
Motel - Hospitality property combines drive-up guest rooms with fuel service, retail space, and an on-site laundromat.
Where is this motel located?
The property is located at 740 E Pike Avenue Columbus, MT.
What is the asking price?
The asking price for this property is $1,390,000.
What are key features of this property?
This property features: 20‑unit motel with classic drive‑up rooms; 9,950‑square‑foot commercial property on 1 acre; Conoco station and convenience store included
