Two prime acquisitions by Taylor Consulting Inc. (OTCBB:TAYO), due diligence on another and a strategic purchase agreement to acquire a West Texas real estate broker in one of the hottest areas in the country come just ahead of near-record construction numbers in Abilene, Texas.
Part of a multi-county region engulfed in the Cline Shale oil boom in West Texas’ Permian Basin, Abilene and its surrounding metro area are enjoying economic growth that has shown no signs of slowing down.
Cline Shale is an intensive oil and natural gas exploration and production region in the eastern shelf of the Permian Basin in West Texas, estimated to bring 15 years of drilling activity and at least 30 years of oil production.
The Abilene Reporter-News reported last week that the Abilene Economic Index posted another increase in August, rising to 121.7 from 121.3 the month before. Impressive construction numbers are pushing the index upward, with $133.3 million in permits issued this year to date. That total is up nearly 53 percent relative to the first eight months of last year. Average home sales have increased by 2.6 percent over the same period last year, as well.
“It’s the Cline Shale effect – West Texas communities are benefiting from an influx of workers handling the oil and natural gas production, which naturally brings with it residential and commercial real estate development. Our focus on Abilene is not incidental, but calculated,” said TAYO CEO Scott Wheeler. “So impressive construction and home sales numbers coming on the heels of our most recent activity in the area spur us to continue our strategy there, which is to continue to expand our real estate portfolio through the fourth quarter and beyond.”
Through its real estate division, Third Avenue Development, TAYO has already acquired two prime properties in the town of Merkel, which is part of the greater Abilene region. The company announced this week that it has completed its due diligence toward the acquisition of another property in the area: a 10-acre lot in the neighbouring town of Tye.
The area’s healthy economic growth, spurred by the West Texas oil and gas boom, has made it a hot spot for real estate development. Earlier this month, Third Avenue Development signed a purchase agreement to acquire White Buffalo Property Solutions LLC, a licensed West Texas real estate broker, to help facilitate more potentially lucrative deals in the region.
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