The innovation of fracking in the oil and gas industry has led to a new boom in the exploitation in the industry, where reserves long known to explorers that were deemed inaccessible are finally able to be tapped. As such, places like Dickinson, North Dakota have become the front line of North America’s new oil economy. This town of 17,000 in the rural plains is now the center of a massive economic boom with 15,000 oil workers relocating to the area at one time.
The town of Dickinson is vastly undersupplied by temporary and permanent housing and accommodation, with many of the oil workers living in trailers. Some measures estimate that the Bakken Oil Formation on which Dickinson sits has more oil than Saudi Arabia and the United Arab Emirates combined, so this property boom is expected to continue until the infrastructure to house and feed this new workforce can be met.
The renovation of the Dickinson Grand Hotel into a hotel-condo property is opening up the opportunity to invest in this booming market with a “hands-free” investment. This property now offers the opportunity for individual investors to buy hotel rooms on a hotel-condo basis from approximately $120,000 each.
According to the market research from Property Horizons, investors can expect annual returns of up to 25%, due to the area’s booming market for housing and hotels. For those skeptics, the sellers are offering an optional rental guarantee of 15% net returns per year – proof that they are confident in the project’s success. With Exxon Mobil, Chevron and Halliburton all making long-term commitments in the area, it is apparent that the time is now to invest with America’s new oil boom.