Restaurant Building with
For Sale
Contact for pricing
Pending
765 S 20th St W, Billings, MT 59102
Furniture, fixtures, and equipment are included with the restaurant building.
Property Size5,484 SF
Lot Size1.34 Acres
Days on Market14
Property Features for 765 S 20th St W
General Information
Standard status
Pending
Size
5,484 SF
Lot size
1.34 Acres
Property subtype
RETAIL
Additional Details
Furnished
Yes
Highway Access
Yes
Equipment Included
Yes
Listing Agency:
NAI Business Properties
(406) 671-8257
Listed By:
Tyler Samson · License #RRE-RBS-LIC-25433
(406) 671-8257
Source:
Moodyscre
Added: Jul 29
Changed: Jul 31
Last Checked: Aug 10 at 11:08AM
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 NAI Business Properties
Investment Insights
Based on property information with market context.
The property is a restaurant building containing 5,484 square feet, with furniture, fixtures, and equipment included in the sale. The existing improvements provide an established physical setting for restaurant operations and are offered together as one property asset.
Located at 765 S 20th St W in Billings, Montana, the property occupies a 58,413-square-foot lot. Interstate access is nearby, providing a convenient connection to the surrounding roadway network.
Located at 765 S 20th St W in Billings, Montana, the property occupies a 58,413-square-foot lot. Interstate access is nearby, providing a convenient connection to the surrounding roadway network.
Key Highlights
- 5,484‑square‑foot restaurant building
- Furniture, fixtures, and equipment included in the sale
- 58,413‑square‑foot lot
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
$65,298
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
3.97%
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%
$1,305,960
$1.3M
Cap Rate 7%
$932,829
$932.8K
Cap Rate 9%
$725,533
$725.5K
Market Conditions
NOI Build-Up for 5,484 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
$88.8K $16.20/SF
− Vacancy
−$1.8K −$0.32/SF
EGI
$87.1K $15.88/SF
− OpEx
−$21.8K −$3.97/SF
NOI
$65.3K $11.91/SF
Area
Billings, 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%
$1,305,960
Cap Rate 7%
$932,829
Cap Rate 9%
$725,533
Alternative Uses
Best Use
Specialty Retail
$932.8K
$816.2K – $1.09M
NOI $65,298 @ 7.0% cap · market cap 3.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,760 @ 7.0% cap · market cap 5.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
738
Businesses Nearby
267k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 63%
Shops & Services 24%
Home Improvements & Furnishings 6%
Hotels & Casinos 4%
Texas Roadhouse
Dining
33,020 visits/mo
0.2 miles
Olive Garden
Dining
31,848 visits/mo
0.3 miles
Holiday Station Store
Shops & Services
31,553 visits/mo
0.1 miles
Starbucks
Dining
17,432 visits/mo
0.1 miles
Fuddruckers
Dining
16,712 visits/mo
0.2 miles
Demographics for 59102, MT
48,133
Population
22,706
Households
2.1
Avg Household Size
41
Median Age
43%
College-Educated
97%
High-School Grad
15.0 sq mi
ZIP Area
3,209
Density / Sq Mi
$75,140
Median Household Income
$43,203
Median Earnings
$1,148
Median Rent
$307,400
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Furniture, fixtures, and equipment are included with the restaurant building.
Where is this conventional restaurant located?
The property is located at 765 S 20th St W Billings, MT.
What is the asking price?
The asking price for this property is $1,645,200.
What are key features of this property?
This property features: 5,484‑square‑foot restaurant building; Furniture, fixtures, and equipment included in the sale; 58,413‑square‑foot lot
