Downtown Billings Mixed-Use
For Sale
Contact for pricing
401 N 28TH ST, Billings, MT 59101
91,000 sq ft mixed-use building in downtown Billings.
Property Size92,112 SF
Lot Size2.62 Acres
Price / SF$64.05
Days on Market1786
Property Features for 401 N 28TH ST
General Information
Standard status
Active
Size
92,112 SF
Lot size
2.62 Acres
Property subtype
Mixed Use, Office
Zoning
NZ
Building Details
Year Built
1971
Listing Agency:
Berkshire Hathaway HomeServices Floberg Real Estate Billings
(406) 647-5007
Listed By:
Brandon Treese · License #MT RRE-BRO-LIC-89453
Source:
Crexi
Added: Oct 1, 2021
Changed: Aug 8
Last Checked: Aug 8 at 4:16AM
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 Berkshire Hathaway HomeServices Floberg Real Estate Billings
Investment Insights
Based on property information with market context.
Located at 401 N Broadway in downtown Billings, MT, this mixed-use building offers 91,000 sq. ft. of space. Approximately 44,000 sq. ft. across the main and upper levels are configured for office use, featuring conference space and a passenger elevator. A newer addition to the main level provides approximately 25,000 sq. ft. and includes dock height loading, roll-up doors, and a 5-ton freight elevator serving all floors, along with storage space. The lower level comprises approximately 22,000 sq. ft., primarily designated for warehouse, storage, and mechanical functions. The property sits on 2.62 acres and includes a paved asphalt parking lot with multiple access points and over 115 off-street parking spaces.
Key Highlights
- 91,000 sq. ft. mixed‑use building in downtown Billings, MT
- Approx. 44,000 sq. ft. of office space with conference space and passenger elevator
- Approx. 25,000 sq. ft. newer addition with dock height loading and roll‑up doors
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
$530,980
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
9.00%
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%
$10,619,600
$10.6M
Cap Rate 7%
$7,585,429
$7.6M
Cap Rate 9%
$5,899,778
$5.9M
Market Conditions
NOI Build-Up for 92,112 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
$829.0K $9.00/SF
− Vacancy
−$70.5K −$0.77/SF
EGI
$758.5K $8.24/SF
− OpEx
−$227.6K −$2.47/SF
NOI
$531.0K $5.76/SF
Area
Billings, MT
Vacancy
8.50%
Lease Rate
$9.00 /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%
$10,619,600
Cap Rate 7%
$7,585,429
Cap Rate 9%
$5,899,778
Alternative Uses
Best Use
Office B
$14.42M
$12.62M – $16.83M
NOI $1,009,732 @ 7.0% cap · market cap 17.11%
Second Best
Mixed Use
$12.71M
$11.12M – $14.83M
NOI $889,802 @ 7.0% cap · market cap 15.08%
Theoretical Best
Office A
$20.10M
$17.59M – $23.45M
NOI $1,406,882 @ 7.0% cap · market cap 23.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,476
Businesses Nearby
Explore this area
Business Placement
Demographics for 59101, MT
41,522
Population
18,864
Households
2.2
Avg Household Size
37
Median Age
22%
College-Educated
91%
High-School Grad
590.8 sq mi
ZIP Area
70
Density / Sq Mi
$58,165
Median Household Income
$36,258
Median Earnings
$930
Median Rent
$243,000
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 91,000 sq ft mixed-use building in downtown Billings.
Where is this mixed-use property located?
The property is located at 401 N 28TH ST Billings, MT.
What is the asking price?
The asking price for this property is $5,900,000.
What are key features of this property?
This property features: 91,000 sq. ft. mixed‑use building in downtown Billings, MT; Approx. 44,000 sq. ft. of office space with conference space and passenger elevator; Approx. 25,000 sq. ft. newer addition with dock height loading and roll‑up doors
