Hidden Hills Estates Subdivision

Talkeetna

1975

800 acres of raw land in the Talkeetna area, a staging area for tours of Mt McKinley, that had several small lakes as well as a prolific fishing stream running through it. We invested in the platting, permitting, road development, electric, and soil tests for future septic fields, taking great care to design many lots with access to the fishing stream.  We offered seller financing for most of the lot purchases, which contributed to the growth of our already large loan portfolio.

Investment Thesis

In 1974 a voter initiative successfully passed to move the state capital out of Juneau to a point somewhere midway between Anchorage and Fairbanks. In 1976 another vote was held which named the town of Willow, Alaska as the future home of the Alaska state capital. This subdivision project was a speculative bet on the future economic activity which would follow the new state capital.

Lessons Learned

The vote for funding to actually move the state capital to the town of Willow was ultimately defeated in the November 1982 election but by that time we had long since sold all of the lots in the subdivision. It is a good reminder to always "Sell on the news!"