For Sale
Contact for pricing
3708 N Reserve St, Missoula, MT 59808
Banks
Property Size7,012 SF
Lot Size0.66 Acres
Price / SF$313.75
Days on Market863
Property Features for 3708 N Reserve St
General Information
Standard status
Active
Size
7,012 SF
Class
A
Total Parking Spaces
19
Lot size
0.66 Acres
Property subtype
Retail
Zoning
LU-MU; City of Missoula
Building Details
Year Built
2007
Buildings
1
Stories
2
Listing Agency:
Sterling CRE Advisors
Listed By:
Claire Matten, CCIM/SIOR · License #RRE-BRO-LIC-90048
(406) 360-3102
Source:
Crexi
Added: Apr 23, 2024
Changed: Aug 25
Last Checked: Sep 1 at 12:07AM
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 Sterling CRE Advisors
Investment Insights
Based on property information with market context.
Key Highlights
- High‑traffic location on North Reserve Street, Missoula's busiest corridor, offering excellent visibility and accessibility.
- Rare drive‑thru capability with a triple drive‑thru, ideal for various business types.
- Well‑maintained, two‑story building with ±7,012 SF of office/retail space.
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
$141,520
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
6.43%
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%
$2,830,400
$2.8M
Cap Rate 7%
$2,021,714
$2.0M
Cap Rate 9%
$1,572,444
$1.6M
Market Conditions
NOI Build-Up for 7,012 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
$193.5K $27.60/SF
− Vacancy
−$4.8K −$0.69/SF
EGI
$188.7K $26.91/SF
− OpEx
−$47.2K −$6.73/SF
NOI
$141.5K $20.18/SF
Area
Missoula County, MT
Vacancy
2.50%
Lease Rate
$27.60 /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%
$2,830,400
Cap Rate 7%
$2,021,714
Cap Rate 9%
$1,572,444
Alternative Uses
Best Use
Specialty Retail
$2.02M
$1.77M – $2.36M
NOI $141,520 @ 7.0% cap · market cap 6.43%
Second Best
Retail
$1.24M
$1.08M – $1.44M
NOI $86,584 @ 7.0% cap · market cap 3.94%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
552
Businesses Nearby
116k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 62%
Shops & Services 17%
Hotels & Casinos 17%
Home Improvements & Furnishings 3%
Panda Express
Dining
26,069 visits/mo
0.1 miles
McDonald's
Dining
18,098 visits/mo
0.3 miles
Freddy's Frozen Custard & Steakburgers
Dining
15,411 visits/mo
0.5 miles
Cenex
Shops & Services
13,996 visits/mo
0.4 miles
IHOP
Dining
7,616 visits/mo
0.1 miles
Demographics for 59808, MT
21,546
Population
9,938
Households
2.2
Avg Household Size
38
Median Age
40%
College-Educated
97%
High-School Grad
157.1 sq mi
ZIP Area
137
Density / Sq Mi
$76,795
Median Household Income
$39,324
Median Earnings
$1,236
Median Rent
$419,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
Where is this bank located?
The property is located at 3708 N Reserve St Missoula, MT.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: High‑traffic location on North Reserve Street, Missoula's busiest corridor, offering excellent visibility and accessibility.; Rare drive‑thru capability with a **triple drive‑thru, ideal for various business types.**; Well‑maintained, two‑story building with ±7,012 SF of office/retail space.
