The Flying Machine Bar

Anchorage

1978

Walsh Investment Company was both the owner and operator of the Flying Machine Bar which opened in 1978 on the shores of Lake Hood in Anchorage, Alaska.

Walsh Investment Company was both the owner and operator of the Flying Machine Bar which opened in 1978 on the shores of Lake Hood in Anchorage, Alaska.

Walsh Investment Company had made a bridge loan to another local developer who planned to redevelop the site into a large hotel under the Red Lion brand. When the developer ran into difficulties on his project we acquired the five-acre lakefront property in 1976. The acquisition included a small twenty room motel and a 12,000 square foot nightclub called the Fancy Moose, formerly The Idle Hour Supper Club, which had recently closed its doors.

We completely remodeled the building and divided the space to create room for two different bar/restaurant businesses. By redesigning the space for two businesses we were able to maximize the value of our single liquor license which covered the entire premises. One half of the building was home to the highly successful Flying Machine Bar, which opened in 1978 and featured an extensive light show. The Flying Machine was so busy we tore down the 20 room motel in order to create more parking spaces.

The other half of the building was leased to burger restaurant which didn’t last very long. The burger restaurant was replaced with a new tenant, the Fly by Night Club, featuring the now locally famous performing artist, Mr. Whitekeys and the Spamtones.  Starting at this location, and later at the new Fly By Night Club location built by Walsh Investment Company, the club was packed every weekend until Mr. Whitekey’s retirement in 2006.

Later when Keystone Development Company completely redeveloped the property with the Clarion Hotel development project we paid homage to the history of the site by naming the hotel restaurant The Flying Machine, and the hotel bar The Fancy Moose Lounge which remain to this day.

Investment Thesis

The site was at a prime location near downtown Anchorage on the shores of Lake Hood. In 1938 deep channels were dug to connect Lake Spenard with Lake Hood to accommodate a float plane airport – a major source of transportation in Alaska. The west end of the lake is still known as Lake Hood, and the east end is Lake Spenard. Today this airport is the busiest float plane airport in world. This type of hard to find lakefront property doesn't become available very often so we jumped on it.

Lessons Learned

Earlier, in 1974, construction had begun on Trans-Alaska Pipeline System (TAPS), or “Alaska Pipeline” which brought a huge and lasting economic boost to the Alaskan economy. When the pipeline workers from the north slope came to Anchorage with money in their pocket it was nice to own a waterfront bar where they could spend their wages.