823/825 Wolf Street | Missoula, MT - Multifamily Building & House Offering Memorandum - LoopNet
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OFFER REVIEW DATE MARCH 29, 2021
Offering Memorandum
823/825 Wolf Street | Missoula, MT
Multifamily Building & House
823/825 Wolf Street
Offering Memorandum
Multifamily Building &
House
PREPARED BY
MATT MELLOTT, SIOR, CCIM
Matt@SterlingCREadvisors.com
406-203-3950
NICK CHAUSSEE
Nick@SterlingCREadvisors.com
406-529-0535
CLAIRE MATTEN, CCIM
Claire@SterlingCREadvisors.com
406-360-3102
www.sterlingcreadvisors.com
OFFERING OVERVIEW
Sterling CRE Advisors is pleased to present the opportunity to acquire
Offering Price $825,000
this multifamily building and house located at 823/825 Wolf Street
in Missoula, Montana. This 8-unit offering, located in the popular
Northside neighborhood, is an easy walk to Missoula’s vibrant Price Per Unit $103,125
downtown district.
Price per SF $140.28
Built in the 1930s, the fully leased building, with long-term rental
history, includes six (6)-1 bedroom units, one (1)-studio unit, and one 823/825 Wolf Street & 605 N 2nd Street W
(1)-2 bedroom unit. Included in the unit count is a freestanding house. Address
All units are on one tax parcel, and two platted lots. Missoula MT 59802
±5,400 SF + 2,700 SF Basement (multifamily)
The property includes one garage, leased for an additional fee. On- Property Size:
±481 SF House
street parking is available. The building is an excellent opportunity for
a value add investor; current market rents (page 16) have exceeded Acreage: ±.167 Acres (per CAMA)
what the property currently yields.
Currently, demand for rental housing is robust in Missoula. As of the 1st Year Built 1930
quarter of 2021, the vacancy rate was a meager 1.24%. Simultaneously,
the for-sale housing market is extremely limited, particularly for
product priced under $300,000.
823-825 Wolf Street | 4
823-825 Wolf Street | 5
INVESTMENT HIGHLIGHTS
7 Apartment homes in one 100% Occupied Desirable neighborhood
building + one house
Significant rent growth Marketable 1 bedroom High barriers to entry for new
potential floorplans construction
823-825 Wolf Street | 6
SUMMARY | Locator Map
Downtown
Missoula
- 15 minute walk St Patrick’s
Hospital - 10
minute walk
Northside
Pedestrian
Bridge
823-825 Wolf Street | 7
SUMMARY | Property Details
823-825 Wolf Street & 605 N 2nd St W
Property Address
Missoula, Montana
Property Type Multifamily Building
Year Built 1930
Total Acreage .167 acres (Per CAMA)
5400 ± Square Feet + ± 2,700 SF basement (Per
Building Size
CAMA) + ±481 SF house (per CAMA)
Unit Count: 8
Unit Mix: (1)- Studio, (6)- 1 bed/1 bath, (1)- 2 bed/1 bath
Current
100%
Occupancy:
Zoning M1-R2 Missoula
Geocodes 04-2200-15-3-01-02-0000
Property Taxes $4,786.06 (2020)
Construction Concrete foundation, wood frame
Parking On Street
Great location- walk downtown
Features: 100% Occupied with long term residents
Marketable 1 bedroom mix
823-825 Wolf Street | 8
823-825 Wolf Street | 9
823-825 Wolf Street | 10
823-825 Wolf Street | 11
MARKET INTEL | Multifamily Market Conditions Vacancy rates in Missoula County continue to be extremely low in Q1 2021 at 1.24%. New unit deliveries have not kept pace with growing demand. With limited new supply of less than 250 units set to deliver in 2020, and no indications of a drop in demand, it is expected that rents will continue to rise as options for renters continue to be limited. VACANCY The vacancy rate for apartments was 1.24% up slightly from .95% in Q4 2020. The minimal increase in the vacancy rate still puts Missoula well below equilibrium, with demand outstripping supply. Nationwide, vacancy rates hover at 4%; long-term, the average vacancy rate is 7%. Many factors are contributing to the lack of supply including construction delays due to material shortages, rising construction costs, a slow permitting and approval process and a lack of construction ready sites. Demand continues to be driven by population growth. As new residents move to Missoula, the limited amount of for sale housing options are pushing typical homebuyers into rentals. Additionally, for many households, COVID has disrupted plans for moving. For Americans who did move in 2020, most of them were leaving larger metros for smaller cities like Missoula. RENTS Average asking rent in Missoula is $1,076, an increase of 19% from this time last year. The average rent per square foot is now $1.51. According to the MultiHousing News, the U.S. saw -.8% rent growth year over year. Nationally, average rent was $1,462 a month at the end of 2020. SUPPLY In Missoula, Development Services planners estimate approximately 600 new housing units need to be built yearly in the city to keep up with demand. However, 2021 is not on track to meet local needs. As noted above less than 250 multifamily units are set to deliver in 2021. When the entire county is included, close to 900 new housing units (all types) are needed per year to keep up with population growth. Missoula County issued 788 permits in 2020. 823-825 Wolf Street | 12
MARKET INTEL | Market Vacancy & Rents - Q1 2021
MISSOULA RENTS BY UNIT TYPE
Studio 1BD|1BA 2BD|1BA 2BD|2BA 2BD|2BA 3BD|2BA
Avg Rent $741.20 $979.21 $1121.33 $1430.40 $1345.00 $1476.67
Vacant Units 16 23 17 14 1 4
Rents & Availability- Q1 2020 vs Q1 2021
823-825 Wolf Street | 13MISSOULABY
MISSOULA BYTHE
THENUMBERS
NUMBERS| |Overview
Accolades
#2 BEST PLACES TO LIVE IN THE AMERICAN
WEST
Sunset Magazine
#10 AMERICA’S MOST CREATIVE SMALL CITIES
Creative Vitality Index
#4 BEST SMALL CITIES IN AMERICA TO START
A BUSINESS
Verizon
#10 BEST SMALL METROS TO LAUNCH A
BUSINESS
CNN Money
#9 MOST FORWARD THINKING CITIES IN
AMERICA
Trip.com
GOLD RANKING FOR BIKE FRIENDLINESS
One of only 38 cities in America- League of American
Bicyclists
#6 BEST CITIES FOR FISHING
Rent.com
#1 CITY FOR YOGA
Apartment Guide
TOP 10 CITIES FOR BEER DRINKERS- 2015,
2016,2017, 2019
Smart Asset
823-825 Wolf Street | 14MISSOULA BY THE NUMBERS | People
Missoula has seen steady growth throughout the
past decade. It is becoming a popular destination
for young professionals and retirees
11.4% POPULATION
Growth since 2010
19.6% GROWTH
Growth in the number of 25 to 34 year olds with a
college degree since 2010
46.4 % DEGREED
Of the population 25 and up have a bachelors degree
or higher vs 32.6% in the US
21.6% HIGH INCOME HOUSEHOLDS
Of households have incomes over $100,000 a year, up
from 12.4% in 2010
54.7% RENTERS
Of resident’s are renters; 1.7% rental vacancy rate vs
6.1% in the US
823-825 Wolf Street | 15MISSOULA BY THE NUMBERS | Economy
Missoula has a diverse and growing economy.
The University of Montana and premiere regional
healthcare facilities have long provided economic
stability for the city.
Now, a growing roster of tech companies and
professional services are propelling Missoula
forward.
DIVERSITY AMONG TOP EMPLOYERS
University of Montana (education), Providence Health
Services/St. Patrick’s Hospital (medical), Community
Medical Center (medical), Montana Rail Link
(transportation), Neptune Aviation (aviation services)
$221,445,219
Value of Missoula Building Permits FY2019
36% OF NEW JOBS ARE KNOWLEDGE JOBS
Of jobs created in Missoula between 2017-2018 were
in knowledge based positions such as tech, advanced
manufacturing and bioscience
13% UPTICK IN OFFICE BASED JOBS
From 2010 to 2017, with 22% in Professional Services
GROWING TECH HUB
ATG, OnX Maps, Submittable, Lumen Ad, Class Pass
are some examples of tech firms that call Missoula
home
REMOTE WORK HUB
A growing population of remote workers employed
by out of state firms- Montana has the 4th highest
per capita share of remote workers in the US
823-825 Wolf Street | 16MISSOULA BY THE NUMBERS | Transportation
Missoula has invested heavily in a diverse
transportation network including bike lanes,
sidewalks, a free bus system and a well served
airport. Prefer to drive? Not much traffic to stop
you!
16 MINUTES
Average commute time, vs 27 minutes in the US
15.6%
Walk or bike to work versus 3.1% in the US overall
18 HOURS
Lost in Missoula traffic congestion yearly, vs 99 hours in
the US overall
12 NON-STOP DESTINATIONS FROM MSO
With an upgraded terminal under construction
62 MILES
Of bike lanes with a Gold rating from the League of
American Bicyclists
87 WALK /100 BIKE
Bike and Walk Scores for the Waterfront Gateway
Project
14 ROUTES
Provide a bus network across the City of Missoula
823-825 Wolf Street | 17MISSOULA BY THE NUMBERS | Lifestyle
MARKET INTEL | Economic Overview
What do yoga studios, rodeos, wilderness areas,
modern art galleries, wine bars, creative dining and
surfing all have in common? You can experience
them all in a day in Missoula.
400 ACRES OF PARKS
77% of Missoula residents live within a 10 minute walk of a
park vs 55% average for America
60,000 ACRES OF WILDERNESS
If you want more adventure or solitude
#2 FOR BEER
In the number of Craft Breweries per capita in the US
5 SKI MOUNTAINS
Can be easily accessed as a day trip from Missoula,
including Snow Bowl, 30 minutes from downtown!
$672,000,000
In arts related revenue yearly in the Missoula region
TOO MANY TO COUNT
Local restaurants using locally grown ingredients
7 FARMERS MARKETS
Several operating year round
823-825 Wolf Street | 18823-825 Wolf Street | 19
DISCLAIMER This offering memorandum contains select information pertaining to the completeness of all summaries and information contained herein, to consult Property and Owner, and does not purport to be all-inclusive or contain with independent legal and financial advisors, and carefully investigate the all or part of the information which prospective purchasers may require to economics of this transaction and Property’s suitability for your needs. ANY evaluate a purchase of the Property. The infromation contained in this offering RELIANCE ON THE CONTENT OF THIS OFFERING MEMORANDUM IS SOLELY memorandum has been obtained from sources believed to be reliable, but AT YOUR OWN RISK. has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty The Owner expressly reserves the right, at its sole discretion, to reject any or all of any kind. Such information is includes estimates based on foorward- expressions of interest or offers to purchase the Property, and/or to terminate looking assumptions relating to the general economy, market conditions, discussions at any time with or without notice to you. All offers, counteroffers, competition and other factors which are subject to uncertainty and may not and negotiations shall be non-binding and neither Sterling CRE Advisors nor present the current or future performance of the Property. All references to the Owner shall have any legal commitment or obligation except as set forth acreages, square footages, and other measurements are approximations. This in a fully executed, definitive purchase and sale agreement delivered by the offering memorandum describes certain documents, including leases and Owner. other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information Photos herein are the property of their respective owners. Use of these images and an opportunity to inspect the Property may be made available to qualified without the express written consent of the owner is prohibited. prospective investors. You are advised to independently verify the accuracy and 823-825 Wolf Street | 20
Commercial Real Estate Services
SterlingCREadvisors.com
2829 Great Northern Loop, Suite B | Missoula, Montana 59808 | main: +1 406 203 4547 | email: info@sterlingcreadvisors.comYou can also read
