Listing Agency: Magic City Real Estate Show Phone

Listed By: Britin Cross · License #RRE-RBS-LIC-88947 Show Phone

Source: Dunndeal

Added: Jul 21 Changed: Aug 31 Last Checked: Sep 2 at 3:16AM

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Investment Insights

Based on property information with market context.

This mixed-use property occupies 4.169 un-zoned acres and combines a residence with a substantial attached shop. The home includes two bedrooms, two bathrooms, a bonus room with deck access, and two garages positioned below the living area. The 1,600 SF property also includes a shop with two large garage doors, shelving, an office, and an attached bathroom.

Located at 9705 Shepherd Rd in Shepherd, Montana, the property provides highway access and is minutes from the Shepherd community, with convenient access to Billings. The improvements are offered as-is and will not qualify for traditional financing.

Key Highlights

• 4.169 un‑zoned acres in Shepherd, Montana
• Attached residence with 2 bedrooms, 2 bathrooms, and a bonus room
• Shop includes 2 large garage doors, shelving, office, and attached bathroom

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

$18,338

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

7.05%

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%

$366,760 $366.8K

Cap Rate 7%

$261,971 $262.0K

Cap Rate 9%

$203,756 $203.8K

Market Conditions

NOI Build-Up for 1,600 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

$30.3K $18.96/SF

− Vacancy

−$2.1K −$1.33/SF

EGI

$28.2K $17.63/SF

− OpEx

−$9.9K −$6.17/SF

NOI

$18.3K $11.46/SF

Area

Yellowstone County, MT

Vacancy

7.00%

Lease Rate

$18.96 /SF/Yr

Expense Ratio

35.00%

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%

$366,760

Cap Rate 7%

$261,971

Cap Rate 9%

$203,756

Alternative Uses

Best Use

Flex RnD

$262.0K

$229.2K – $305.6K (±1% cap)

NOI $18,338 @ 7.0% cap · market cap 7.05%

Second Best

Mixed Use

$178.2K

$155.9K – $207.9K (±1% cap)

NOI $12,474 @ 7.0% cap · market cap 4.80%

Theoretical Best

Office A

$347.6K

$304.1K – $405.5K (±1% cap)

NOI $24,330 @ 7.0% cap · market cap 9.36%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick Restaurant

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

Lease Details

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

6

Businesses Nearby

Explore this area Business Placement

Demographics for 59079, MT

3,520

Population

1,647

Households

2.1

Avg Household Size

43

Median Age

23%

College-Educated

97%

High-School Grad

334.1 sq mi

ZIP Area

11

Density / Sq Mi

$65,851

Median Household Income

$34,597

Median Earnings

$1,516

Median Rent

$350,400

Median Home Value

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties 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?

Mixed-use property - Un-zoned acreage combines a residence with substantial workshop space.

Where is this mixed-use property located?

The property is located at 9705 Shepherd Road Shepherd, MT.

What is the asking price?

The asking price for this property is $260,000.

What are key features of this property?

This property features: 4.169 un‑zoned acres in Shepherd, Montana; Attached residence with 2 bedrooms, 2 bathrooms, and a bonus room; Shop includes 2 large garage doors, shelving, office, and attached bathroom