Case Study
Transforming a distressed 100% Section 8 property in Tacoma, Washington, preserving affordable housing and revitalizing the community
Situation
Rialto Apartments, a 100% Section 8 property in Tacoma, Washington, was previously owned by a cash-strapped nonprofit that was exiting the real estate space. The property was acquired by Urban Black Community Development, a Black, woman-run nonprofit that specializes in affordable housing and community building. When Arboreal took over management, the property faced severe challenges: only 70% occupancy, numerous deficiencies, and failed inspections that put the rental assistance contract with the local housing authority at risk.
The property residents, most of whom were senior people of color, were living in poor conditions and were at risk of losing their housing assistance due to failed inspections. The historic property, located in a prominent location right next to Tacoma City Hall, also included 10 retail spaces, only one of which was occupied by a paying tenant. One non-paying tenant was operating a highly problematic mini mart that was attracting blight to the community.
Arboreal's Approach
Arboreal took over management and promptly started a full renovation program of both interiors and exteriors. Vacant units were quickly remodeled to modern standards, providing permanent affordable homes to seniors earning less than 50% AMI, who need to pay only 30% of their income to live there, resulting in permanent affordable housing and stability for the community.
A real highlight was the commercial renovations, which involved partnering with the City of Tacoma to gain funds for tenant improvements, resulting in full occupancy of all retail spaces with businesses, all of which are minority or woman owned.
Key Strategies
- • Immediate full renovation program addressing both interior and exterior deficiencies
- • Rapid remodeling of vacant units to modern standards to restore occupancy
- • Preserving permanent affordable housing for seniors earning less than 50% AMI
- • Strategic partnership with City of Tacoma for commercial tenant improvement funding
- • Eliminating blight by addressing problematic commercial tenant and revitalizing retail spaces
- • Supporting minority and woman-owned businesses through commercial space development
Results
Arboreal successfully transformed Rialto Apartments from a distressed property at risk of losing its Section 8 contract into a fully stabilized, modern affordable housing community. The property now provides permanent affordable homes for senior residents while contributing to the economic vitality of downtown Tacoma through fully occupied commercial spaces.
Income Over First 15 Months
Commercial Leases
Key Outcomes
The property achieved full occupancy with all units renovated to modern standards, ensuring residents have safe, quality housing. The rental assistance contract was preserved, providing stability for senior residents who pay only 30% of their income for housing.
All 10 retail spaces are now fully occupied by minority and woman-owned businesses, transforming the commercial component from a source of blight into a vibrant economic asset for the community. The historic property's prominent location next to City Hall now serves as a model for successful affordable housing and community revitalization.
All residential units fully occupied
All occupied by minority/woman-owned businesses
Permanent affordable housing for seniors
Visit Rialto's Commercial Tenants
All 10 retail spaces are now occupied by minority and woman-owned businesses, contributing to the economic vitality of downtown Tacoma.
Pacific Northwest Dance Foundation
A vibrant cultural organization dedicated to preserving and promoting dance traditions in the Pacific Northwest. The foundation provides educational programs, performances, and community engagement opportunities that celebrate the rich diversity of dance in our region.
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Palmerston Cellars
A premier wine shop and tasting room offering carefully curated selections from local and international vineyards. Palmerston Cellars brings the wine culture to downtown Tacoma, hosting tastings and events that enhance the neighborhood's vibrant atmosphere.
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Eternal Soul Bowl
A beloved local restaurant serving fresh, healthy bowls and soulful cuisine that brings the community together. Eternal Soul Bowl offers nourishing meals made with locally sourced ingredients, contributing to the culinary diversity of downtown Tacoma.
Learn MoreTransforming Properties, Delivering Results
Rialto Apartments now provides permanent affordable housing for senior residents while contributing to the economic vitality of downtown Tacoma through fully occupied commercial spaces operated by minority and woman-owned businesses.
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