Ken Smith
Turnagain Times
Anchorage based United Companies, Inc. is close to buying The Inn at Whittier. The company is a wholly owned subsidiary of parent company Sea Lion Corporation, an Alaska Native Corporation headquartered in Hooper Bay in Southeast Alaska.
The Inn has been on the selling block since October 2008. The Hernandez family, owners of Alaska Fur Gallery, filed for Chapter 7 on Aug. 18, 2008, ceasing operations.
David Cottrell, the CEO of United Companies, Inc., said they’re now doing due diligence.
Cottrell said they will meet at a board meeting at The Inn at Whittier and see if they can get approval for acquisition.
“We hope by the end of the month,” he said. “There’s not a set date. What happens in due diligence will determine what we do, it may come up with problems that need to be fixed.”
The Inn at Whittier was listed for $2.2 million, said Carol Fraser, Dir. of Business Development for Pfeffer Development, who is handling public relations and marketing for Sea Lion Corp. and United Companies, Inc.
“When we get our final inspections done, they will definitely go through,” she said of the likely purchase of the Inn by United Companies, Inc.
Fraser made a public presentation at the Whittier City Council meeting April 7 addressing the potential purchase of the Inn.
The First National Bank of Alaska is the current owner of the Inn, which was built for an estimated cost of more than $6 million, said Fraser.
“It’s a pretty good deal, if you can pick it up for around $2 million,” she said.
But before the Inn is purchased, she said the buyer needs to make sure the building is in sound condition and up to code.
The building did have recent damage after the pipes froze and burst, filling the basement with five feet of water.
Contractors were in town earlier in the month and said the water damage was so severe that electrical and telephone wiring had to be replaced, and the boiler and furnace were damaged.
Cottrell said if the company purchases the Inn, there’s still a great deal of work ahead to prepare for its opening. He said they are starting with a clean slate and need to hire management, staff, new vendors, etc.
United Companies, Inc. and Sea Lion Corporation are heavily involved in the telecommunications industry, and Cottrell said they are branching off into the tourism industry and are developing hotels within the state, but would not divulge the location or name of the hotels. He also said they are involved in commercial and residential real estate development.
Established in 1977, United Companies, Inc. has an estimated $27 million in annual sales with 140 employees as reported in Manta.com, a business profile website.
Sea Lion Corporation was established in 1973 and reported to have an estimated $20 million in annual sales and 160 employees.