Building Details

Year Built 1983

Buildings 2

Stories 1

Listing Agency: CENTURY 21 ML Properties

Listed By: Mark Dawson · License #MT

Source: Crexi

Added: Dec 2, 2020 Changed: Aug 8 Last Checked: Aug 20 at 1:38PM

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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 CENTURY 21 ML Properties

Investment Insights

Based on property information with market context.

The Junction City Saloon is located on I94 at exit 47 in Custer, Montana. The business benefits from a market presence, a reputation, and a friendly atmosphere. The sale includes a full liquor and gaming license, and all furniture, fixtures, and equipment. The business has 5 income sources: bar, restaurant, gaming, and motel income, with the opportunity to serve liquor at events in Yellowstone County. The customer base includes locals, bikers, hunters, fishermen, tourists, and truckers. The property features 3 gaming machines, a Montana lottery machine and Montana Sports betting, an ATM, a pool table, a jukebox, a dart board, and 2 patios (smoking and nonsmoking). The motel, built in 2015, has 3 rooms, along with a 4th room that is used by the owner as an office and as a place to stay over. The property size is 2119 square feet.

Key Highlights

• Multiple Income Streams: Bar, restaurant, gaming, and motel income provide diverse revenue opportunities.
• Includes valuable Full Liquor & Gaming License for full liquor service and gaming operations.
• Prime Location: Situated on I94 exit 47 in Custer, Montana, attracting tourists, truckers, and locals.

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

$31,052

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

7.86%

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%

$621,040 $621.0K

Cap Rate 7%

$443,600 $443.6K

Cap Rate 9%

$345,022 $345.0K

Market Conditions

NOI Build-Up for 2,119 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

$42.5K $20.04/SF

− Vacancy

−$1.1K −$0.50/SF

EGI

$41.4K $19.54/SF

− OpEx

−$10.4K −$4.88/SF

NOI

$31.1K $14.65/SF

Area

Yellowstone County, MT

Vacancy

2.50%

Lease Rate

$20.04 /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%

$621,040

Cap Rate 7%

$443,600

Cap Rate 9%

$345,022

Alternative Uses

Best Use

Specialty Retail

$443.6K

$388.2K – $517.5K (±1% cap)

NOI $31,052 @ 7.0% cap · market cap 7.86%

Second Best

Hotel Hospitality

$189.8K

$166.1K – $221.4K (±1% cap)

NOI $13,286 @ 7.0% cap · market cap 3.36%

Theoretical Best

Office A

$460.3K

$402.8K – $537.0K (±1% cap)

NOI $32,222 @ 7.0% cap · market cap 8.16%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Junction City Saloon ... Restaurant

Suggested Use

Top Pick Hair Salon Nail Salon Spa & Massage Center Hotel & Motel

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

30

Businesses Nearby

3k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Cenex Shops & Services

3,162 visits/mo 0.0 miles

Demographics for 59024, MT

303

Population

197

Households

1.5

Avg Household Size

51

Median Age

23%

College-Educated

96%

High-School Grad

486.5 sq mi

ZIP Area

1

Density / Sq Mi

$70,250

Median Household Income

$33,750

Median Earnings

$406

Median Rent

$190,600

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this bars & pubs located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Bar & Pub - Profitable Montana saloon with motel and multiple income streams.

Where is this bar & pub located?

The property is located at 510 2nd Avenue Custer, MT.

What is the asking price?

The asking price for this property is $395,000.

What are key features of this property?

This property features: Multiple Income Streams: Bar, restaurant, gaming, and motel income provide diverse revenue opportunities.; Includes valuable Full Liquor & Gaming License for full liquor service and gaming operations.; Prime Location: Situated on I94 exit 47 in Custer, Montana, attracting tourists, truckers, and locals.