MAKing It: Amid housing shortage, a Fairbanks builder invests in his community

Presented by First National Bank Alaska

As Alaska’s housing crunch weighs on communities across the state, in the Interior city of Fairbanks, Aaron Welterlen has been busy at work.

Welterlen’s company, W.V. Builders, Inc., is constructing dozens of new apartments that provide modern amenities — municipal utilities, walkability, comfort and energy-efficiency design — to locals.

“Everything we do, we do to give someone a home that they deserve to live in,” said Welterlen.

Just east of the University of Alaska Fairbanks, Welterlen has constructed 56 townhouse-style apartments clustered together off College Road — with 30 more under construction. Amid a statewide housing shortage, these apartments offer residents a high standard of living in a town where much of the available housing is outdated or inefficient.

With a father in the U.S. Navy, Welterlen lived all over the U.S. and the world while growing up. Later, he moved to New Zealand. Now married and a father of three children, Fairbanks is his home.

“We’re reinvesting in my community because I believe in it. I believe in Fairbanks,” said Welterlen. “Fairbanks has a lot to offer. Also, there’s a demand and a need for housing; therefore, we should meet that demand.”

‘Building a healthier home’

Welterlen started a construction business in 2005 as a speculative homebuilder, then shifted to building custom homes and remodels. In 2008, he continued building custom homes and began to build dry cabins, which have no running water.

At that time, Welterlen thought: “Those are fine, but we really need to build apartments, because there is such a demand for quality rentals in Fairbanks.”

In 2010, he formed W.V. Builders, Inc. The company built its first apartment complex in 2014, completed its second project in 2020, and started a third project in 2021. In 2022, Welterlen built Midway Flats. The 28-unit apartment building is his newest project born from Welterlen’s philosophy — to construct apartments that he would enjoy living in.

“I am building some of the healthiest, nicest and most energy-efficient apartments that are out there,” he said.

First National Bank Alaska provides Welterlen banking services for Midway Flats and his other companies.

“We offer the full suite of commercial banking solutions to Mr. Welterlen,” said Kyle Gray, assistant vice president and branch manager at First National’s Golden Valley Branch in Fairbanks.

The bank provides lines of credit to help Welterlen shift with variances in cash flow from season to season. The bank’s merchant services also simplify his business transactions, and construction lending options help fuel Welterlen’s vision of building quality homes for residents.

“We spend most of our time working on construction lending. Housing is an issue in Fairbanks that Aaron is working diligently to solve. We are proud to partner with financing for these housing developments to help address our community’s housing needs,” said Gray.

In Alaska, an extensive housing shortage has stifled economic growth, impeded the well-being of communities and undermined family stability. According to the nonprofit Housing Alaskans, an estimated 27,500 new and renovated homes will be needed statewide within the next decade.

But, “like many communities around the state, Fairbanks faces many unique challenges” when it comes to housing, said Gray.

Supply chain issues continue to linger after the pandemic, said Gray, and material costs that went up never came back down.

“The incentive to build is just not what it used to be,” said Gray.

Meanwhile, existing housing doesn’t meet the demand. Many homes are old and energy inefficient, hailing from the population boom of the 1980s. Homes built to older standards, with aging materials, can create unhealthy indoor environments filled with dust or particulate matter, said Welterlen. Some homes are built on permafrost, ground which remains frozen year-round and creates an unstable, shifting foundation.

According to Welterlen, housing standards have changed in the last 30 years. “By having a new housing stock, we have more energy-efficient buildings. We have a healthier home.”

In addition, Fairbanks’ sprawling housing has taken up much of the land for people who want access to municipal utilities, said Welterlen.

What the community truly needs, he said, is density.

His apartments are both near the university and in a thriving business area with access to nearby trails — tapping into locals’ desires for a walkable, close-knit town.

“We were trying to create something that was more of a community,” said Welterlen. “I wanted to start building apartment complexes on land that had municipal utilities, water and sewer services, which could create density and which helps eliminate sprawl.”

Inside the apartments, tenants enjoy upgraded appliances. Each unit has its own heat recovery ventilation fresh air system. Floors made of luxury vinyl planks eliminate the need for carpet and the dust and dander that goes along with it.

The apartments are extremely energy-efficient. Exterior apartment walls are nearly 17 inches thick, thanks to an additional four inches of rigid foam on the exterior walls. Both the exterior and interior partition walls are constructed of insulated concrete forms. This provides both energy efficiency, and incredible sound proofing, so tenants enjoy a quiet, noise-free home.

Each unit uses baseboard electric heat, so no PM 2.5 (fine particulate matter) pollution is added to the atmosphere. There are no boilers or gas ranges, so there is essentially zero risk of carbon monoxide poisoning.

While expensive to build, it’s worth it, Welterlen said. He is playing the long game, betting that the town he believes in will thrive.

“We are creating a community for people to live in, to grow and raise families and importantly, we’re giving the Fairbanks borough a tax base to continue funding schools, education, roads and all the rest,” said Welterlen.

‘His businesses have really shifted’

In addition to W.V. Builders, Welterlen owns an excavation company. It pairs well with his building company; he’s able to dig foundations and install sewage lines without hiring an outside contractor. Welterlen serves as a director of the Interior Alaska Building Association and formerly served as its president. He is also the current vice president of the Alaska State Home Building Association.

In 2017, he started Fairbanks Water Company, which delivers bulk potable water. In Fairbanks, many homes that are not hooked up to public utilities have water-holding tanks. That business has also been a success, he said.

“His businesses have shifted tremendously,” said Gray with First National. “What we’ve done for him is what we’d do for every commercial customer — look at his needs and tailor financial solutions to fit.”

Welterlen has been banking with First National for more than a decade.

“First National has enabled me to grow all of my businesses simultaneously, which is something that can be difficult to do if you don’t have the right banking team behind you,” said Welterlen.

As a branch manager, Gray believes relationship building is his most important role. “We’re a relationship-focused bank, and Alaska’s largest and longest running community bank,” he said.

“People who don’t have a good relationship with a bank don’t know what they’re missing,” he continued. “Aaron doesn’t have to worry. We take stuff off his plate. We provide innovative tools and services to help him manage the money so he can focus more on running his businesses.”

For Welterlen, this peace of mind is invaluable as he continues building new housing. His efforts to invest in Fairbanks housing has its challenges, but the potential to build a thriving community is well worth it.

“It is a fantastic place, it really is an incredible location,” said Welterlen. “And often you end up living somewhere because of the people. The people make the community, the community makes the town, and that’s the reason people stay.”

First National Bank Alaska has been Alaska’s community bank since 1922. We’re proud to help Alaskans shape a brighter tomorrow by investing in your success as you take the leaps of faith, large and small, that enrich communities across the state.

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This article was produced by the sponsored content department of Anchorage Daily News in collaboration with First National Bank Alaska. The ADN newsroom was not involved in its production.