Headwaters Livestock Auction Offering Brochure

HEADWATERS LIVESTOCK AUCTION
THREE FORKS, MONTANA | GALLATIN COUNTY
LISTED EXCLUSIVELY BY

The Headwaters Livestock Auction, centrally located in one of Montana’s
most productive livestock producing areas, sits on approximately 40
acres. The current owners leased the facility for three years prior to
acquiring it in 2014, and have successfully operated it as a family business
for the past eight years. Situated in the middle of the western and eastern
agricultural markets with major highways heading all directions, cattle
can easily be transported in all directions.
The Auction Yard has historically run between 31,200 and 37,800 head
of cattle through the facility on an annual basis. A pro-forma of the
operation will be made available to financially-capable buyers under a
non-disclosure agreement.
INTRODUCTION
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LOCATION & ACCESS
Located in Three Forks, Montana, Headwaters Livestock Auction is
conveniently situated just over a mile from Interstate 90 via Highway
287 on the well-maintained Wheatland Road.
Three Forks has grown significantly in the last several years and has a
population of approximately 2,073 residents. Three Forks has several
lodging options including the historic Sacajawea Hotel, Lewis & Clark
Motel, Broken Spur Motel, and a Travelodge by Wyndham. For dining
options, there are several restaurants and bars. The town also offers
medical and dental facilities, several small shops and salons, automotive
services, rodeo grounds and is home to Steer In Trailer Sales. Located
where the Jefferson and Gallatin Rivers converge to form the Missouri
River, the town is a hub for recreational activities, and includes the 9-hole
Headwaters Public Golf Course.
Bozeman, which lies about 30 miles east of Three Forks, is a vibrant,
active, university-oriented city steeped in culture and art. It is the fourth
largest city in the state, with a population of approximately 52,600
residents. Bozeman is home to Montana State University, Museum of the Rockies, and abundant opportunities for fine dining, entertainment, and
shopping. Bozeman maintains its lively downtown core yet also preserves the small-town feeling visitors keep returning for, which couples nicely with
amenities typically found in larger cities. Within an hour and a half from Bozeman is Yellowstone National Park, which is easily accessible via either
the north entrance in Gardiner or the west entrance in West Yellowstone.
Recently upgraded, Bozeman Yellowstone International Airport (BZN) at Gallatin Field in Belgrade offers several full-service FBOs and excellent
commercial services through Alaska, Allegiant, American, Delta, Frontier, JetBlue, Southwest, Sun Country, and United Airlines. One of the busiest
passenger airports in the Pacific Northwest, and the busiest in the state of Montana, the airport offers direct flights to about 30 major airports around
the nation.
Approximate distances to other area cities and towns from Headwaters Livestock Auction are as follows:
Three Forks
5 miles
Whitehall
28 miles
Bozeman
35 miles
Ennis
47 miles
Butte
53 miles
Helena
64 miles
Great Falls
151 miles
Billings
178 miles
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ELEVATION & CLIMATE
Three Forks and the Headwaters Livestock Yard sit at an average elevation of approximately 4,075 feet above sea level.
The average precipitation of rainfall is 14.3 inches per year with the majority falling in May, and about 32 inches of snowfall annually.
Average high temperatures in June, July and August range from 77° to 86° Fahrenheit. Summer average minimum temperatures range from 47° to 52°.
In December, January and February average high temperatures are between 34° and 40°. Winter average minimum temperatures are typically around
15° Fahrenheit. There are approximately 186 sunny days in Gallatin County, Montana. Three Forks is situated the USDA Hardiness Zone 4b.
— 3 —

OPERATIONAL DESCRIPTION & IMPROVEMENTS
Throughout the year, Monday is the regular sale day. Interspersed throughout the regular Monday-sale schedule are special sales such as feeder, sheep
and bred cow sales. During the fall months, the special feeder sales are typically on Wednesdays. Currently, several local stock producers hold their
annual bred cow, bull and/or feeder-calf sales at the facility as well.
During auction days, fifteen part-time employees are hired to conduct a variety of tasks such as feeding cattle, moving cattle to the sale ring, running
the sale ring, re-penning cattle and loading out trucks. There are two full-time employees—an office manager and a yard foreman.
The full-time yard foreman manages the Auction Yard and typically puts in a six-day work week. The foreman generally oversees the day-to-day
operations as well as the incoming and outgoing livestock. On a weekly basis, there are four part-time employees that work when needed at the
Auction Yard. One of the part-time staff works flexible hours to unload trucks at night beginning on Sunday night before the sale through Wednesday
night loading cattle post sale and helping during off hours as needed. Another one of the part-time staff conducts maintenance and general work on
an as-needed basis at the Auction Yard. A third part-time staff member works when the yard crew needs days off and Sundays on an as-needed basis.
Typically, Sunday afternoons/evenings are busy receiving livestock prior to the Monday sale. A fourth part-time staff member works weekends to clean
pens, receive cattle and feed livestock as necessary.
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OPERATIONAL DESCRIPTION & IMPROVEMENTS
— 5 —
On a typical sale week, livestock is received beginning several days
prior to the Monday sale. There are approximately 80 receiving pens
on the north end of the facility where cattle are counted, inspected,
and checked in. The receiving pens have feed and water facilities.
The cattle move smoothly through the pen system through a series
of alleys feeding to the sale ring. For bull sales, a single-wide alley
is utilized to feed bulls into the sale ring in single file, keeping the
animals calm and with minimal stress. Once cattle are sold, they
are moved out of the sale ring and penned in one of the holding
pens on the south side of the facility. All sold cattle are then loaded
and shipped out of a second set of loading chutes on the south side
of the facility, when trucks are available. According to the Seller,
the Auction Yard corral system can hold up to about 3,500 head of
feeder cattle at a time. The pen facility is well designed and graded
to divert water and effluent to concrete collection channels during
the occasional water runoff event.
The entire pen system was constructed out of steel pipe and rails.
The working cattle chute is housed in a covered shed for protection
during inclement weather days and is centrally located in the corral
system providing easy access from both sides of the facility. Alleys
of pens of various sizes have feed bunks and waterers, including six
pens that hold semi loads of cattle with feeders and waterers. All
alleys are fed with a hay processor. Manure is made into compost
and is taken away at no cost.
HISTORICAL SALE NUMBERS
According to the Montana Department of Livestock, the total
number of cattle ran through the Auction Yard for the past five-years
are as follows:
2016 Cattle Total 31,457
2017 Cattle Total 36,586
2018 Cattle Total 37,821
2019 Cattle Total 34,467
2020 Cattle Total 34,424
2021 Cattle Total 31,222

OPERATIONAL DESCRIPTION & IMPROVEMENTS
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SALE BUILDING
The Sale Building, which houses the offices, cafe, brand
inspector’s office and sale ring, has been well maintained
and is very functional. Constructed in 2004, this building
is approximately 18,460 square feet of usable space and
is one of the newest facilities of its kind Montana. In the
main sale arena, portable bleachers on wheels allow for easy
reconfiguration for the weekly auction and special events
such as weddings, reunions, car shows, sports events, or they
can be removed altogether. In addition, an approximately 68
feet x 95 feet overhang extends over a portion of the sorting
corrals and alleys off the west side of the main building.
The main sale arena can be totally emptied and provides
for easy cleanup. The office area consists of a large open
area where the business manager and receptionist reside,
and where ranchers come to pick up their checks and settle
business. Off this main office area is a State Brand Inspector
office and a mudroom for the employees as well as a break
room and a private office area.
Across from the office area and near the main entrance to the
facility is the Cattlemen’s Café. Consisting of approximately
1,930 square feet, the restaurant area is spacious and
complete with a full commercial kitchen. Open for sale
days, it is operated by an outside contractor and provides a
delicious breakfast and lunch menu.
On the second level of the Sale Building is a large open
area directly above the main level offices and consists
of approximately 4,200 square feet. Within this space
is approximately 940 square feet of partially finished
office space and storage. This second-level space could
potentially be developed for either additional office space
to lease or sell, or to run an additional business generating
supplemental revenues for the Auction Yard.

OPERATIONAL DESCRIPTION & IMPROVEMENTS
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OPERATIONAL DESCRIPTION & IMPROVEMENTS
During the winter of 2022, the auction block was updated with new audio
components and computer system. The computer system has a direct feed to
the business office for the efficient processing of cattle sales and for quickly
processing sale checks and receipts. The Auction Yard utilizes Sale Time
System to manage their sales; this system is leased and will transfer to the
new owner at closing. The sale ring itself has a 50,000-pound Fairbanks-
Morse digital scale under the livestock deck.
STAFF HOUSING
An approximately 1,708 square foot modular home that is located on the
property has historically housed one of the staff. This home is on an individual
well and septic system, and is heated with gas-propane forced-air heat.
ROPING ARENA
An outdoor-sand roping arena is situated near the southwest corner of the
property. Constructed of steel-pipe fencing, the arena is approximately 100
feet x 400 feet, with an alleyway on one side and pens on both ends of the
arena.
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OPERATIONAL DESCRIPTION & IMPROVEMENTS
LAGOON SYSTEM
There are four lagoons located on the property that serve different purposes. All the lagoons were permitted and constructed through the Montana
Department of Environmental Quality.
Effluent Lagoon
In the rare occasion of significant rainfall, the Auction Yard is designed to drain any runoff containing livestock effluent to a series of concrete
drainage channels. Once contained within the concrete channels, the runoff gravity-flows from south to north through the length of the facility. The
effluent is then captured within a lined lagoon situated on the west side of the Yard. This solid waste is pumped on an as-needed basis and disposed of
appropriately.
Livestock Water Lagoon
Most of the livestock waterers in the holding
pens within the Auction Yard are designed
to be continuous flow to prevent freezing
during the winter months and to provide fresh
drinking water to the livestock. Each of the
livestock waterers contains a drain that catches
the overflow and is piped underground to the
lagoon located on the north side of the Auction
Yard. The water is stored in the lagoon during
the winter months and then pumped out of the
lagoon during the summer months. The water is
either utilized to irrigate the surrounding grass
growing on the property or it is used by state,
county or local construction companies for road
projects in the area that require water for dust
mitigation.
Sewer Lagoons
Two additional, smaller lagoons handle grey
water from the Auction Yard and sewer produced
by the facility. According to the Seller, these
two lagoons have historically operated under
capacity with very little upkeep or maintenance
required and serve the facility very well.
— 9 —

UTILITIES & SERVICES
Electricity is provided by Northwestern Energy. Telephone and internet service are provided by CenturyLink. The Auction Yard is served by an
individual well and septic system as is the manufactured home. The buildings are heated with propane heat supplied by Montana Energy Alliance.
The taxes on the real estate and improvements for 2021 were $12,183.00.
REAL ESTATE TAXES
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WATER RIGHTS
Water Right No. Filing Date Use
41G-30016405 August 2005 Domestic/Stock
GWIC Id No. Gallons Per Minute Use
221208 50 Restaurant and Office Use
295867 50 Livestock Yard Use
MINERAL RIGHTS
The Seller will convey with the Property 100% of whatever mineral, oil, gas, geo-thermal, hydrocarbon and gravel rights it owns, subject to reservations
by previous owners. The Seller makes no representation as to the quantity or quality of any mineral or other subsurface rights appurtenant to the
Property.
— 11 —
FENCES & BOUNDARY LINES
The Sellers are selling Headwaters Livestock Auction
in its “as is-where is” condition which includes the
location of the fences as they now exist. Boundaries
shown on any accompanying maps are approximate.
The maps are not to scale and are for visual aid only.
The accuracy of the maps and information portrayed
thereon is not guaranteed nor warranted.
The Sellers hereby make known that there may be
variations between the deeded property lines and
the location of the existing fence boundary lines on
Headwaters Livestock Auction. The Sellers make no
warranties with regard to the location of the fence lines
in relationship to the deeded property lines, nor do the
Sellers make any warranties or representations with
regard to specific acreage within the fenced property
lines.

SUMMARY STATEMENT
Situated at the crossroads of Interstate 90 and US Highway 287, Headwaters Livestock Auction is positioned at the intersection of two major highways
that serve a vast area of South-Central Montana. This region harbors some of Montana’s most productive cattle ranches. Convenient to the interstate
and a major US Highway, this ideal location allows for transportation of livestock to and from all Western and Central Montana as well as Canada.
The Seller would be willing to assist a new owner in the transition of the business to new management. It is their sincere desire to see the Auction
Yard to continue to be successful and prosperous moving forward. They have made the decision to retire and pull back from the day-to-day demands
a livestock auction can pose.
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OFFERING PRICE & CONDITIONS OF SALE
Headwaters Livestock Auction, as previously described herein, is being offered for sale at $3,250,000 Cash or Terms acceptable solely at the
discretion of the Sellers. The conditions of sale are as follows:
1. All offers to purchase or letters of intent must be in writing and accompanied by a wire transfer of 3.0% of the purchase price to the
escrow account at Security Title Company of Bozeman;
2. Earnest money deposits will be placed in escrow with Security Title Company of Bozeman, which may place the funds with local
banks at nominal rates of interest accruing to the benefit of the Buyer until Closing;
3. All Prospective Buyers must demonstrate, to the satisfaction of the Seller, absolute financial capability to purchase the Property prior
to scheduling an inspection of the Property;
4. The Sellers will provide and pay for a standard owner’s title insurance policy. Any endorsements requested by the Buyer or any
lender will be at Buyer’s expense. Title to the real property will be conveyed by a deed;
5. All of the water right claims controlled by the Property will be transferred to the Buyer at Closing;
6. Buyers’ Brokers are welcomed and invited to contact Mike Swan in our Bozeman Office for information regarding Cooperation
Policies.
The Sellers reserve the right to effect a tax-deferred exchange for other real property in accordance with provisions in Section 1031 of the
Internal Revenue Code. The Buyer will not be required to incur any additional expenses nor to step into the chain of title on any property
which the Sellers may acquire.
This entire Offering is subject to errors, omissions, prior sale, change or withdrawal without notice and approval of purchase by the Seller.
Information regarding land classifications, acreages, carrying capacities, crop yields, potential profits, etc., are intended only as general
guidelines and have been obtained from sources deemed reliable; however, accuracy is not warranted or guaranteed by the Seller or Swan
Land Company. Prospective Buyers should verify all information to their sole and complete satisfaction.
— 13 —

Swan Land Company has been authorized by the Seller to act as their Exclusive Real Estate Broker on the sale of Headwaters Livestock
Auction. Since 2002, we have primarily focused on the brokerage of significant ranches, farms and recreational properties throughout
the Rocky Mountain West.
This Offering is based on information believed to be correct; however, it is subject to errors, omissions, prior sale and change or withdrawal
without notice. Information contained herein has been provided by the Seller or obtained from other sources deemed reliable. The Agent
does not, however, guarantee accuracy and recommends that any Prospective Buyer conduct an independent investigation.
For more information or to make an appointment to inspect the Property, please contact:
Swan Land Company
1185 North 14th Avenue – Suite One
Bozeman, Montana 59715
Office 406.522.7342
Toll Free 866.999.7342
www.swanlandco.com
Mike Swan
Broker/Owner
Mobile 406.570.4897
mike@swanlandco.com
A 48-hour notice is requested to make proper arrangements for an inspection of Headwaters Livestock Auction.
— 14 —

Great Falls
Helena
HEADWATERS
LIVESTOCK ACTION
Billings
Bozeman

Headwaters Livestock Auction
Broadwater County, Montana, AC +/-
HEADWATERS LIVESTOCK AUCTION
Three Forks, MT
Boundary

Holding Lagoon for Stock Tank
Runoff
Modular Home
Settling Lagoon
Hay Storage
Effluent Catch Lagoon
Manure Stockpile
Sale Barn
Roping Arena

Genuine. Devoted. Proven.
866.999.7342 | WWW.SWANLANDCO.COM | INFO@SWANLANDCO.COM