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Posts Tagged ‘bakken shale’

Real Estate Losses in Western North Dakota Start to Mount

January 5th, 2016 Comments off

mod mancamp williston nd  associated press creditAs oil drilling in North Dakota scales back due to the worldwide drop in oil prices, Morningstar Credit Ratings tells nationalmortgagenews nearly $125 million in securitized loans backed by real estate may be in jeopardy. The debt represents over a third of nearly $340 million of commercial mortgage-backed securities connected to the Bakken Shale oil fields.

As MHProNews reported numerous times, including Sept. 13, 2013 and as recently as Sept. 4, 2014, the housing shortage led to a build-up of manufactured and modular housing in the western North Dakota area around Williston, which prompted some of the highest apartment rental prices in the country.

Investment in new buildings to accommodate the oil patch workers began in earnest in 2006; but with the rapid drop in oil prices recently, thousands of oil workers have been cut, reducing the demand for housing in the Williston area.

Three of the four largest loans represent combined losses of $16.5 million if they have to be liquidated. They include the Strata Estates Suites in Williston and Watford City, the Value Place Williston hotel and Roosevelt East Apartments in Williston. An appraisal in November on the Strata Estates loan revealed it was 65 percent below the value of the initial loan in 2013.

The fourth loan is tied to hotels in Minot, ND which is expected to retain its value. ##

(Photo credit: Associated Press-modular mancamp in Williston, North Dakota)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

CBRE to Auction off Modular Workforce Housing

November 18th, 2015 Comments off

montana_modular_workforce_housing__sydney__bakken__creditA 100-unit full service modular lodging complex in Sydney, Montana will go on the online auction block Dec. 3, 2015, with the bidding starting at $2,000,000, conducted by CBRE. Built in 2013, Eagles Lodging housed oilfield workers in the Bakken Shale and Williston Basin in North Dakota, according to bakken.

The property is being sold subject to a land lease, which the lessee may cancel. The new owner may operate the business or terminate the lease and move the modular buildings elsewhere. In Jan., 2015 the 100 units were appraised at $7 million. Daily, weekly and monthly rentals are available.

In addition to the one and two bedroom fully-furnished modular homes, there are laundry facilities, recreation and fitness areas, a restaurant as well as internet and cable access.

MHProNews understands online bidding lasts for two hours, all done by the internet. Bidders will be required to send a registration deposit of $75,000 in advance of being eligible to bid. The sale may be related to the downturn in demand for domestic oil production. ##

(Photo credit: bakken–Eagles Lodging, modular workforce housing in Sydney, Montana)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Modular Workforce Housing Planned in Mississippi

September 1st, 2014 Comments off

mod mancamp cabin    williston    kari andren and mary pipla   casy page creditThe possibility of up to seven billion barrels of oil in the Tuscaloosa Marine Shale formation in southwest Mississippi and central Louisiana has led the McComb (Miss.) Board of Selectmen to vote in favor of annexing 40 acres for the construction of a 535-unit modular workforce community. Shale Lodge will include a cafeteria, laundry and recreational facilities similar to other workforce accommodations that MHProNews has reported on in the Bakken Shale region of western North Dakota that has drawn thousands of job seekers. Metairie, Louisiana-based CMS Consultants is building the complex that is part of the proposed 240-acre Gateway Industrial Park in Pike County. The city will borrow up to $600,000 to develop the infrastructure site, according to clarionledger.com, and stands to cover the cost of the loan in tax revenues over the next five years. Dozens of wells are being drilled in the area. ##

(Photo credit: Casy Page/willistonherald.com–Kari Andren and Mary Pipla check out modular mancamp accommodations in Williston, North Dakota)

Oil Boom Repercussions

July 4th, 2012 Comments off

While business may be good for housing suppliers to the oil and energy field projects in north central U.S., increasing populations of mostly single men in North Dakota are drawing a mixed reaction, Ohio tells MHProNews.com. With a population grown from 12,500 to over 20,000 in four years, primarily due to the drilling of the Bakken shale formation, Williston, ND passed an ordinance banning RVs from parking within the city limits following nuisance complaints about the people living in the 400 campers clustered in neighborhoods. Three RV sites are set to open this summer there. Officials in Mountrail County, some 30 miles east of Williston, decided 12 man camps housing 4,000 was enough, and imposed a moratorium. Some officials note the increase in crime around the man camps, while also acknowledging economic growth.

(Photo credit: Alana Semeuls/Los Angeles Times/MCT—Watford City, ND)