The largest reported sale of the year for the multifamily market closed on New Year’s Eve and included properties from Williston, Tioga and Stanley, indicating continued strong demand in the oil patch.
Energy Real Estate Solutions announced the six-property sale on Jan. 7. The deal closed at $27.5 million on December 31. 2019, and is listed as the state’s largest multifamily apartment complex sale.
One reason Bakken deals are so highly sought, Elliot said, is that so many of its structures have been recently built, within the past 10 years or so.
“People also realize now that this oil and gas play isn’t going anywhere,” he said. “If nothing else, it’s probably going to get stronger. The infrastructure we have seen in the market over the last 10 years is pretty significant. It’s become a good place for people to live and work.”
Returns in the Bakken are higher than other markets, Elliot added.
“It is not without risk,” he said. “But the returns are higher than the primary markets where people are eking out a 5.5% return. These markets are getting much-higher returns."
Apartment complexes in the Bakken are still a good value. The New Year’s Eve apartments were sold below construction costs.
Four of the six properties sold are in Williston: Westridge Apartments, Roosevelt West Apartments, Eagle Point Apartments and Williston Meadows.
There also were Dakota Apartments in Stanley and the Olson Apartments in Tioga.