Rialto Collection | Case Study | Great Expectations

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Tacoma, WA • 79 units • rehabilitation

100%

Project Based Section 8

1 -> 10

Commercial leases activated

60%

NOI increase in 15 months

70 -> 100%

Occupancy improvement

A 100% Section 8 property in Tacoma that was transferred from a cash-strapped nonprofit to a new partnership between Great Expectations and Urban Black Community Development. The project overcame severe operational challenges including 70% occupancy, failed inspections threatening the rental assistance contract, and area crime to become a vibrant part of Tacoma's downtown core, with 10 minority and woman-owned businesses leasing the commercial spaces.

The Challenge

Prior to our acquisition, the historic property next to Tacoma City Hall had only 70% occupancy, numerous deficiencies, failed inspections risking the Section 8 contract, and 10 retail spaces with only one paying tenant. A problematic mini mart was attracting blight to the community, while senior residents lived in poor conditions at risk of losing their housing assistance.

Our Approach

• Partnered with the Tacoma Housing Authority to secure a new Section 8 contract, ensuring the property remained permanently affordable
• Received subordinated financing from the Washington State Housing Finance Commission to support residential renovations, and from the City of Tacoma to support commercial tenant improvements
• Launched immediate full renovation program addressing both interior unit deficiencies and exterior improvements
• Successfully leased all 10 commercial spaces to minority and woman-owned businesses, transforming the property into an economic asset
• Preserved Section 8 contract ensuring seniors earning less than 50% AMI pay only 30% of income for permanent affordable housing

The Result

Within 15 months, transformed Rialto from a distressed property at risk of losing its Section 8 contract into a fully stabilized affordable housing community. Achieved 100% residential occupancy with all units renovated to modern standards, while the commercial component grew from 1 to 10 occupied retail spaces—all minority and woman-owned businesses.