The Bakken Formation
In 2012, North Dakota overcame Alaska to become the number two oil-producing state in the nation. The lion’s share of production has come from the Bakken region covering western North Dakota.
Experts predict that as many as 48,000 additional wells can be drilled in the Bakken. This massive cache of recoverable oil ensures a long and prosperous future for oil production in the region.
The Bakken rush has also generated thousands of new jobs. Individuals and families are moving from across the country to fill a host of job vacancies. Meanwhile, housing development has been unable to keep pace with the demographic changes.
This housing shortage in the communities of Williston, Dickinson, New Town, Watford City, Minot and other cities in the Bakkens, has led to a frenzy of construction. Thousands of new apartments, townhouses, condominiums, duplexes and single-family homes are under construction, and will continue to be for the next several years.
Recent History in Bakken Development
In May 2012, Barry Stone and his new partner Jon Jannotta assembled 2 properties totaling 15.56 acres with the objective of developing a Class “A” apartment project in Minot, North Dakota.
Their vision was to create a destination offering a California lifestyle in a weather-sensitive environment. It would include a 7,000-square-foot recreation center featuring an indoor swimming pool, spa, exercise facility with showers and lockers, media room, library, game center, and recreation room.
The objective was to win the support of both the Planning Department and the Minot City Council. After meetings with the Mayor, City Manager, and Council President, Greentree had received all necessary approvals for the development of a 239-unit apartment project, comprising fourteen 3-story buildings with both attached and detached fully enclosed garages.
The Council was so impressed by the project that they granted an increase in density of 20 units. The project would be one of the first Class “A” apartment projects in the Northern Lights Subdivision of Minot.
Greentree Development recently sold all of its property rights, entitlements, architecture, engineering and other work products to a large real estate development company, which expects to begin construction in 2013.
Self-Storage in the Bakken Formation
The unbelievable growth in the Bakken has created the need for well-designed, innovated Self-Storage facilities. Greentree will acquire several well-located properties in the Bakken Formation and design projects to meet the requirements of the increasing population. These new Self-Storage facilities will be fully enclosed, offering the latest in security, freight elevators, and climate-control systems.
Greentree is uniquely qualified to develop these new facilities. It boasts the necessary expertise to research the most beneficial locations, acquire properties, meet with the appropriate local planning and building personnel, and process all necessary entitlements. Greentree will also be responsible for the design, construction, marketing, and management of these Self-Storage properties.
Each location will go through an extensive market survey that will help identify other related business opportunities associated with Self Storage, including truck and equipment rental, shipping and moving materials, UPS services, and other retail profit centers. The aim is to maximize the potential net operating income (NOI) for each location.