115 4th Street$6,750,000
Missoula, MT
21852.00 SF, 0.96 ACRE
$6,750,000
Property Details
BIG PICTURE
Commercial
21852.00
FT2
0.96
ACRE
Description
Waypointe represents one of the premier urban infill redevelopment opportunities in Missoula's celebrated Hip Strip district. Ownership has assembled a contiguous 41,700-square-foot development site - a rare feat in this supply constrained corridor - following the successful approval of an alley vacation in June 2025. The result is a clean, unencumbered footprint with no alley bisecting the site, significantly expanding buildable area and design flexibility. The property currently generates approximately $298,788 of stabilized annual NOI from seven commercial tenants operating under predominantly triple-net lease structures with leases staggered through 2026-2029. Most redevelopment sites generate little or no income during entitlement, design and permitting - Waypointe provides a developer nearly $300,000 annually to offset carrying costs, equation to $896,000 in aggregate NOI through the current lease term. Missoula's new Unified Development Code (Title 22, effective March 4, 2026) has transformed the regulatory environment. Parking minimums have been eliminated citywide, density maximums removed, and by-right development is now permitted - eliminating discretionary review risk. The Hip Strip is zoned to match the City's highest density downtown. Attached is the OM with more information. In my 34 years of real estate this is probably the 2nd or 3rd best redevelopment site I've come across. WAYPOINTE – PROPERTY HISTORY & DEVELOPMENT BACKGROUND Cornerstone Commercial Investments acquired the Waypointe property in February 2023 with the intention of developing one of the premier mixed-use projects in Missoula’s Hip Strip district. From the beginning, we viewed the property as a long-term redevelopment opportunity due to its strategic location between downtown Missoula, the Clark Fork River, the University of Montana, and the rapidly evolving South Higgins corridor. At the time of acquisition, the property consisted of multiple commercial buildings and tenants occupying a collection of parcels separated by a public alley. The prior ownership group had commissioned conceptual plans for a six-story mixed-use development consisting of approximately 150 apartment units and three levels of underground parking. While the concept was impressive from a design standpoint, our team determined that the construction costs associated with a project of that scale were substantially higher than what the Missoula apartment market could economically support. After evaluating the original concept, we engaged MMW Architectures of Missoula and spent considerable time exploring alternative development scenarios. Through multiple iterations, we ultimately settled on a significantly more practical and economically viable redevelopment plan consisting of approximately 18,000 square feet of commercial space and parking on the ground floor with three stories of residential apartments above totaling approximately 75 apartment units. During our ownership, we completed the successful vacation of the alley that previously bisected the site. The City of Missoula unanimously approved the alley vacation in June 2025. Ownership paid approximately $126,000 to the Affordable Housing Trust Fund in addition to engineering, planning, legal, and entitlement expenses. The result is a unified 41,700-square-foot development site with significantly improved design flexibility and development potential. Since acquisition, the regulatory environment has improved dramatically. Missoula’s new Unified Development Code eliminated parking minimums citywide, removed density maximums in the Urban Center zoning district, and established a by-right development framework for conforming projects. Today, the property is fully leased to seven commercial tenants and generates approximately $298,788 in annual net operating income. The existing income stream creates a unique opportunity for a future developer to collect meaningful cash flow while completing design, entitlement, financing, and permitting activities. Ultimately, our decision to sell is not driven by concerns regarding the property’s future potential. We remain extremely bullish on the long-term outlook for the site. However, Cornerstone Commercial Investments is currently focused on the development and construction of Fort West Apartments in Missoula and The Tribute project in Sandpoint, Idaho. Given the scale and complexity of those developments, we have determined that our resources and development bandwidth are best allocated toward those projects and our traditional garden-style apartment model. We believe Waypointe is ideally positioned for a developer seeking a large-scale urban infill opportunity with existing income, completed entitlement work, favorable zoning, no parking minimums, and exceptional long-term upside in one of Montana’s strongest and most supply-constrained markets.PRICE
$6,750,000
FEATURES
- MLS #: 30076458
- Lot: 41,700.00 sqft
- Commercial
- Built in 1923
- Price/sqft: $308.90
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