Land can be hard to sell. Without the right knowledge of how buyers and developers spot value in land parcels, marketing large tracts of land can be a drawn-out process. SterlingCRE Advisors recently closed two major land transactions in Missoula, Montana, showcasing the expertise required to get it done.
Two Major Transactions Highlight SterlingCRE’s Land Expertise
SterlingCRE Advisors’ recent transactions—the sale of ±108.38 acres within the Bonner West Log Yard TEDD and the purchase of ±187 acres for the Grass Valley Gardens and Industrial Park—showcase the critical skills and in-depth knowledge required to complete complex land deals.
Industrial Development Moves Forward–
Sale of ±108.38 Acres in Bonner West Log Yard
SterlingCRE Advisors is proud to announce the sale of an expansive ±108.38-acre industrial property within the Bonner West Log Yard Targeted Economic Development District (TEDD). Matt Mellott, Managing Partner and Commercial Real Estate Advisor, represented the seller in this major industrial development deal in Missoula County.
SOLD
Industrial Land Development Opportunity
NHN Cowboy Trail, Missoula, Montana
Exclusive Seller Representation by Matt Mellott, CCIM | SIOR
List Price
$6M
Project Size
±108.38 Acres
Asset Class
Land
Close Date
October 2024
This rare property, zoned Industrial Center Heavy and Industrial Center Light, presents a unique opportunity for industrial development in Missoula County. The preliminary plat, already approved, subdivides the acreage into 28 parcels ranging from 1 to 3.5 acres, ensuring versatility for future buyers. The zoning flexibility and availability of Three Phase Power nearby make this site ideal for a wide range of industrial uses, from light manufacturing to logistics.
Future Growth at the Wye–
±187 Acres Acquired for Grass Valley Gardens and Industrial Park
In another major transaction, SterlingCRE Advisors facilitated the purchase of ±187 acres at NHN Highway 10 West, marking the beginning of the Grass Valley Gardens and Industrial Park development. This ambitious project will introduce a mix of residential and business offerings to the Wye area, a targeted growth zone identified by the Missoula County Growth Policy.
CLOSED
Residential & Commercial Land
NHN Highway 10, Missoula, Montana
Exclusive Buyer Representation by Matt Mellott, CCIM | SIOR
List Price
$4M
Project Size
±187 Acres
Asset Class
Land
Close Date
October 2024
Grass Valley Gardens represents a significant step toward addressing the growing demand for commercial space and attainable housing in Missoula. The development will feature residential neighborhoods, with a focus on attainable and workforce housing options, and commercial space designed to meet the needs of firms looking to capitalize on the site’s strategic location at the intersection of Highway 10 and Interstate 90.
The Wye area has been identified as a hotspot for growth, particularly due to its proximity to significant transportation routes and its existing employment base. With over 1,500 jobs already located within a five-minute drive, and increasing interest from manufacturers, the Grass Valley Gardens development is set to play a crucial role in ensuring balanced growth between job creation and housing supply in the area. Moreover, the property is positioned to leverage the infrastructure benefits offered by its designation as part of a TEDD, which will help secure the necessary resources for utilities, road improvements, and community amenities.
Why Is Land Hard to Sell?
Owning land is one thing, but knowing how to market it effectively and understand its development potential is entirely different. The key to a successful land transaction lies in an advisor’s ability to see the site through a developer’s eyes. SterlingCRE Advisors understands that in-depth and specialized knowledge of the land itself—slope, soil, drainage, environmental constraints, flood zones, and site access—is essential to understanding and maximizing its value.
In addition to the physical characteristics, insight into infrastructure availability, zoning, and land use plans is crucial. Infrastructure and zoning determine the potential intensity of the development, directly influencing the final value a buyer is willing to pay. A skilled brokerage team knows land use and zoning regulations inside and out and can pinpoint value-add opportunities that maximize the land’s potential.
Land value is a residual of the use that can be placed on top of it. The more intense the potential development, the more valuable the land becomes. Understanding the nuances of local and state policy around land use, combined with the availability of municipal services, directly impacts the land’s final valuation. A good brokerage team leverages this knowledge to secure the best outcome for their clients.
Understanding the Land Sales Process
Selling land is not a simple process—it requires a comprehensive understanding of public processes, including subdivision approvals, rezoning, and navigating public finance incentives like TEDD and TIF. Success in selling large land parcels depends on close coordination with a wide array of professionals: engineers, surveyors, attorneys, architects, geotechnical experts, and environmental consultants.
A successful land transaction starts with in-depth due diligence, involving thorough assessments of the land’s physical and legal characteristics. It is critical to involve the right consultants to answer essential questions upfront—everything from environmental concerns to feasibility studies that include the land’s slope, soil quality, and utility access.
From there, a defensible development pro forma helps set the foundation for the maximum price a developer can pay for a parcel. SterlingCRE’s team, with its extensive market intelligence and in-depth understanding of development intricacies, helps build these pro formas to capitalize on value gaps, maximizing the potential upside while mitigating risks for both sellers and buyers.
SterlingCRE: Navigating Missoula’s Growth
These transactions reflect SterlingCRE Advisors’ unwavering dedication to driving the economic potential of Missoula County. By identifying properties that offer a strategic mix of industrial, residential, and commercial opportunities, we are laying the foundation for sustainable growth that meets the evolving needs of our community.
SterlingCRE Advisors remains committed to delivering unmatched insights, strategic execution, and successful outcomes for our clients—ensuring that as Missoula grows, our clients grow with it.
