The Conservation Fund (TCF) allocated $44.4 million from its Working Forest Fund to purchase Maine’s Hilton Timberlands. The 44,000-acre investment opportunity came to market in late June following 70 years of ownership by the Hilton family.

Spirited Bidding

Listed with LandVest, Hilton Timberlands sold via a single-stage, sealed-bid sale process in less than 90 days. The short sale window prompted The Conservation Fund to utilize its Working Forest Fund. “This is exactly what the Working Forest initiative is suited to tackle,” said Tom Duffus, who leads land conservation efforts for The Conservation Fund in the Northeast. “With the extraordinary forest resources on the property and its revenue-generation capabilities, it was a well sought-after property. The only reason we were able to compete in the marketplace for it was because we had the ready capital available through the Working Forest initiative.”

Diverse Resource

Hilton Timberlands is located in Franklin and Somerset Counties along the Route 201 National Scenic Byway near the Canadian border north of Jackman, Maine. In addition to its timberland assets, Hilton Timberlands appealed to investors seeking natural capital or impact investments.

The property is home to four high-elevation peaks and multiple waterfalls. It provides habitat for moose, eagles, falcons, and other wildlife species. Duffus said TCF works to keep such large forests intact in order to maintain both the environmental benefits as well as the economic benefits for the local communities.

“This property occupies an important geographic location in the Appalachian chain, and it’s special in terms of its ecological value,” Duffus said. “In addition to all that, the property has provided jobs for the Jackman area of Maine for generations, especially for maple sugar production. It has a prominent role in the economy of a very rural place.

“When a property like this one comes up for sale, it’s very important for us to be able to act quickly with due diligence. This one fits in beautifully. It hits ecological conservation, working forest management, public recreation, and supporting the local economy.”

Rare Opportunity

According to LandVest Institutional Land Group Vice President David Speirs, the open-market sale of forestland similar in size to Hilton Timberlands is a rarity in Maine these days. “There have not been a lot of opportunities for buyers to acquire any kind of larger-scale timberland property in Maine lately,” Speirs said. “Much of what has happened here over the last 10 to 15 years have been direct deals.”

Going forward, LandVest will manage Hilton Timberlands for The Conservation Fund.

“We always welcome the opportunity to work with The Conservation Fund on these types of projects. We know they’re going to be a solid buyer who comes at it in a professional way, and the outcome is going to be excellent for the seller and for the community,” Speirs said.

In addition to its timber resources, 10 commercial maple-sugar outfits currently operate on Hilton Timberlands.