Anonymous buyers creating an 'assemblage'

By RICHARD HANNERS / Whitefish Pilot

An anonymous buyer or group of buyers have been purchasing lots between Wisconsin and Idaho avenues from Skyles Place north to the McGarry's Roadhouse restaurant creating what some in city government call an "assemblage."

So far, 15 properties have been purchased over the past three years under the tax-owner name Whitefish Management II LLC, of Reno, Nev. The properties range from about a tenth of an acre to 2.1 acres and total about 11.2 acres.

Whitefish Management II LLC was registered with the Montana Secretary of State in February 2007. Jill Zignego, of Five Star Rentals, is the registered agent, but a Realtor in town who knows the buyers' identity says Zignego is just managing rentals of the purchased properties.

The Realtor said the buyer or buyers are all locals who have lived here a long time, raised families and call Whitefish home. They are involved in the community and want to stay here and do the right thing, he said. There's no hurry about developing the assembled properties, but the buyer or buyers plan high-end development at some point.

The Realtor said many of the neighbors near the assemblage have been contacted. Some are willing to sell, some won't and some can't sell yet for family or other reasons.

Another Realtor familiar with the assemblage said it's hard to put a price tag on the land because it's used for so many purposes and has different zoning possibilities. He said one property sold for $250,000, another for $750,000 and another for well over $1 million.

But there's definite advantages to putting properties together, he said. The owner or owners could locate streets, access from Wisconsin and parking to their own advantage. There would also be the benefit of "cost averaging," he said, but likely the land will be held as an investment for a long time.

Marlin and Mable Koestler may eventually be targeted by the buyer or buyers. They've owned their home at the corner of Skyles Place and Wisconsin Avenue since 1956.

Marlin was a brakeman for Great Northern and Burlington Northern railroads for 42 years. Mable was a housewife and raise their three children. The Koestlers said their neighbors have been approached about selling, but they didn't know about the assemblage.

"I don't want to sell," Marlin said. "I guess I'll hold 'em up for a while."

One neighbor who sold said she was offered a "fabulous price" by the anonymous buyer or buyers. Shirley Nelson also needed to sell her six acres between Wisconsin and Iowa avenues because she was badly in debt.

A Whitefish resident for 48 years, Nelson ran the Hair Hut until injuries from skiing at Big Mountain forced her to sell her hairdressing business about 20 years ago.

She said she paid about $200,000 about 10 years ago for a house on a two-acre parcel on Wisconsin right next to the former Eagles Roost bed and breakfast. People often used her property to access Wisconsin from Iowa.

"I didn't mind so long as they didn't walk through my house," Nelson said.

When she caught wind of buyers snatching up properties in the neighborhood, she listed the two-acre parcel for $1.35 million. One broker told her she'd never get her asking price, but she did.

"It was beyond my wildest dreams," she said. "It couldn't have come at a better time."

Nelson said she's seen the Whitefish market go through many ups and downs, but she's definitely bullish on the local real estate market.

"If you don't own a home, get one," she said. "Whitefish is a playground. Prices will keep going up. You'll double your money."