SterlingCRE Advisors’, Connor McMahon represented the buyer in the successful acquisition of 283 West Front Street—a Class-A, fully leased multi-tenant office building nestled in vibrant Downtown Missoula.
$7.2MM
±25,835 SF
Office
February 2024
The Opportunity
SterlingCRE Advisors identified River Front Place as a premier investment opportunity. The nearly ±30,000 square foot, multi-tenant office building is a high-quality asset with long-term tenants like D.A. Davidson and SG Long Financial. Its strategic location, alongside $2.5 million in capital improvements and historically stable occupancy, presented an excellent opportunity for investment in a tight office submarket. The investor, seeking a robust and stable asset with potential for steady cashflow, found River Front Place to align perfectly with their investment criteria. This, combined with the property’s proven track record of low vacancy and consistent rent increases made it a compelling opportunity.
Despite national skepticism around the office asset class, SterlingCRE’s insight into the local market dynamics revealed the property’s inherent value. The deal represented an optimal office investment in a market where prices were rising, inventory was low, and value was to be captured. This perspective was crucial for the investor, who was looking for an opportunity that stood strong against broader market uncertainties.
The Approach
McMahon and the team at SterlingCRE Advisors leveraged proprietary market data, analytics tools, and local insights to help the client make a confident investment decision while securing a favorable cap rate. The importance of a local brokerage partner in this process cannot be overstated. Having a team on the ground, deeply embedded in the local market, provided unparalleled access to off-market deals, local network connections, and nuanced understanding of regional market trends. The SterlingCRE brokerage team, holding more CCIMs and SIORs than any other Montana firm, was able to provide a granular analysis of market trends, site data, and financial modeling to facilitate a successful transaction. This local expertise was instrumental in navigating the intricacies of the Missoula office market, ensuring the investor could capitalize on the opportunity with confidence.
The Outcome
In a climate where many are hesitant about office investments, swayed by media headlines and national sentiments, SterlingCRE instead followed internal proprietary data and local market knowledge. As a result, the buyer was able to seize on an extraordinary investment opportunity. The partnership with SterlingCRE, a firm with strong local ties and market expertise, proved invaluable in this process, enabling the investor to move quickly and effectively in a competitive landscape.
The property, with its premium location, quality construction, and stable occupancy, stands as an example of the opportunities within Missoula’s tight office submarket. This transaction further reinforces SterlingCRE’s reputation as a trusted advisor capable of navigating complex market conditions to uncover value for its clients. The story of River Front Place is a testament to the value of local knowledge and strategic partnership in realizing investment potential.
Ready to explore office investment opportunities in Montana? Reach out to Connor McMahon with SterlingCRE today. Whether you’re buying or selling, we’re here to help you navigate the ever-changing market.
