DEPARTMENT OF EAGLES began in 2000, when New York University assigned freshmen Fred Nicolaus and Daniel Rossen to share a room. To pass the time during an uneventful spring semester, the two began making music together, collecting samples and turning them into songs using pirated software and a microphone borrowed from their neighbor Chris Taylor (who, years later, would become Daniel's bandmate in Grizzly Bear and DoE's producer/engineer). Somewhat accidentally the group was discovered by a California label and the material recorded in this period was combined with later studio sessions to form Department of Eagles' 2003 debut, The Cold Nose. It gained a small but enthusiastic audience and was praised by critics from the San Francisco Bay Guardian to the London Times.

In 2004 Daniel joined the group Grizzly Bear as a singer, guitarist and songwriter. He began touring with the band, and brought a number of songs to their critically acclaimed sophomore album Yellow House and follow-up EP Friend. In the meantime, Fred was working a 9-5 job and opening a savings account. However, after work he would record ideas and email them to Daniel, who was also working on a new batch of material between tours, much of which felt far too personal for Grizzly Bear. Over the years, stealing time on weekends and between tours, they slowly accumulated bits and pieces, and by late 2007 an album had begun taking shape.