Case Study
Transforming a distressed LIHTC affordable housing property in Seattle, Washington
Situation
The Lowman Building, a 100% affordable housing LIHTC property in Seattle, Washington, was owned by a private owner who had struggled through different property managers, none of whom were able to bring the property under control. The property experienced severe distress during COVID, with a high level of vacancy, non-paying tenants, and major maintenance issues due to deferred maintenance. Additionally, the property suffered from persistently high operating costs that made it financially unsustainable.
Arboreal's Approach
Arboreal came in and rapidly mobilized our in-house maintenance team to address all maintenance issues, including complete renovation of flood-damaged units that had been vacant for months. We engaged with all tenants and were able to bring payments back to normal standards, quickly leasing all remaining units. We transformed the staffing model using our technology and offshore approach, reducing from 2 FTE to 0.5 FTE, leading to a meaningful reduction in operating expenses.
Key Strategies
- • Rapid mobilization of in-house maintenance team to address all maintenance issues
- • Complete renovation of flood-damaged units that had been vacant for months
- • Proactive tenant engagement to restore payment compliance and rebuild trust
- • Technology-driven staffing model reduction from 2 FTE to 0.5 FTE using offshore approach
- • Rapid lease-up of all remaining vacant units
Results
Arboreal successfully turned the Lowman Building around, achieving a 20% increase in income and a 20% decrease in operating costs. The property is now in meaningfully better physical shape with no deferred maintenance, operating efficiently while maintaining its mission of providing quality affordable housing.
Income Over First 6 Months
Monthly Operating Costs
Key Outcomes
The property achieved full operational stability with restored tenant payment compliance, complete lease-up, and elimination of all deferred maintenance. Through strategic use of technology and efficient staffing models, the building now operates at optimal efficiency while maintaining its commitment to providing quality affordable housing for Seattle residents.
Through improved collections and full occupancy
Through efficient staffing model (2 FTE to 0.5 FTE)
All issues addressed, property in excellent condition
Transforming Properties, Delivering Results
The Lowman Building now operates efficiently and sustainably, providing quality affordable housing for Seattle residents while delivering strong financial performance for the owner.
Ready to Transform Your Property?
Arboreal has the expertise and systems to deliver results for properties facing operational challenges or financial distress.