Building Details

Year Renovated 2015

Buildings 1

Stories 1

Tenancy Single

Listing Agency: NAI Business Properties

Listed By: Tyler Samson · License #MT RRE-RBS-LIC-25433 Show Phone

Source: Crexi

Added: Jul 29, 2024 Changed: Aug 25 Last Checked: Sep 1 at 12:22PM

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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 NAI Business Properties

Investment Insights

Based on property information with market context.

A well-established bar and grill is available for purchase, situated approximately 15 miles north of Billings, Montana. The property is located on Highway 3 North, benefiting from high visibility and traffic volume. The building has a size of 5824 square feet.

Key Highlights

• Well‑established bar and grill business for sale.
• Located 15 miles north of Billings, Montana.
• Situated on Highway 3 North.

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

$85,346

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

7.11%

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%

$1,706,920 $1.7M

Cap Rate 7%

$1,219,229 $1.2M

Cap Rate 9%

$948,289 $948.3K

Market Conditions

NOI Build-Up for 5,824 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

$116.7K $20.04/SF

− Vacancy

−$2.9K −$0.50/SF

EGI

$113.8K $19.54/SF

− OpEx

−$28.4K −$4.88/SF

NOI

$85.3K $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%

$1,706,920

Cap Rate 7%

$1,219,229

Cap Rate 9%

$948,289

Alternative Uses

Best Use

Specialty Retail

$1.22M

$1.07M – $1.42M (±1% cap)

NOI $85,346 @ 7.0% cap · market cap 7.11%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.27M

$1.11M – $1.48M (±1% cap)

NOI $88,562 @ 7.0% cap · market cap 7.38%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Bars & Pubs

Location Intelligence

Demographics for 59002, MT

179

Population

86

Households

2.1

Avg Household Size

35

Median Age

28%

College-Educated

97%

High-School Grad

79.4 sq mi

ZIP Area

2

Density / Sq Mi

$38,125

Median Household Income

$23,854

Median Earnings

$1,162

Median Rent

$430,000

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 - Bar and grill for sale 15 miles north of Billings.

Where is this bar & pub located?

The property is located at 8369 MT-3 Acton, MT.

What is the asking price?

The asking price for this property is $1,200,000.

What are key features of this property?

This property features: Well‑established bar and grill business for sale.; Located 15 miles north of Billings, Montana.; Situated on Highway 3 North.