I don't know if it's my favorite but I always liked Avalon by Roxy Music. 1981 makes the cut. Wasn't the 80's considered New Wave not Alt? Either way I guess it really doesn't mattter. Roxy Music/Brian Ferry was never really considered main stream.
Most of you have probably never heard this, but check out Hello Sailor for some great old "alternative", one of the best bands to come out of NZ IMO, and to top it off dad taught the singer mathis in highschool! Some of it was 70's, some of it was 90's (and they're still playing today!), but for 1985 try this;