A landing field was built on the north side of the King-Snohomish county line by the federal government for use during World War II. It was abandoned after the war, despite plans to expand it for civilian aviation, and acquired by real estate developers Albert LaPierre and Jack Peterson in 1949. LaPierre and Peterson named the property Mountlake Terrace for its plateau-like setting with views of Lake Washington and Mount Rainier, and sought to develop a low-income bedroom community for returning veterans. Construction on the first 250 homes began in June 1949, using a simple floorplan with two bedrooms and basic amenities. The cinderblock homes were built in an assembly line, taking several weeks to complete and leaving landscaping and interior painting to the owners. The homes were initially priced at a minimum of $4,999 (equivalent to $ in 2019 dollars) and sold quickly, requiring expansion beyond the initial subdivision.