Workforce Housing Profits

By Staff Report | March 28, 2013

Providing workforce housing is a lucrative business. Look at the Bakken play’s largest housing provider, Target Logistics Management LLC, and the $625 million it took for Algeco Scotsman, a global remote-housing provider, to buy Target Logistics. And it’s not just the largest housing providers in the play that offer value. SST Bakken Properties LLC, recently acquired a 107-unit lodging facility in Bainville, Mont., from Blaze Enterprises.

According to AS, “Historically, the remote accommodation end-market has been the fastest growing and highest return on investment business segment in the Algeco portfolio.” SST Bakken Properties may not have anywhere close to the number of rooms Target Logistics does, but the company is already planning for expansion at the Bainville Crossing Lodge it just purchased and opened. The site will gain 35 rooms immediately, and in the near future, the company will begin adding hotel quality buildings adjacent to the living units.

SST Bakken Properties investment plans and AS’s commitment to remote employee housing each help to reveal several elements of the business of workforce housing in the region. The extreme demand for housing continues making the investment in living quarters a profitable choice. And, no matter the size of a housing provider’s stock of rooms, the business of workforce housing supply is just as much about getting into the market, as it is in getting out.