Infamous downtown Tacoma property hit with ‘notice of abandonment' designation
It's a prime piece of property in the heart of downtown Tacoma, near McMenamins Elks Temple and Old City Hall.
Plans for demolition of what's known as Graffiti Garages, 725 Broadway, and redevelopment into new apartments date back to 2014. Its 3-year development qualification for an 8-year multifamily property tax exemption (MFTE) expires in December.
The property was among those used by Bellevue-based investment firm iCap in what later was determined to be a Ponzi scheme, according to a ruling in U.S. Bankruptcy Court for the Eastern District of Washington.
Now, the property has hit another benchmark of sorts.
A 'Notice of Abandonment' was listed for the property (officially 716-728 Commerce St.) in Pierce County records earlier this year.
725 Broadway LLC, an iCap-affiliated entity, remains as the site taxpayer on Pierce County's online property portal, and the property has accumulated more than $49,000 in current and past-due property taxes going back to 2024.
The site also is tied to an ongoing investor lawsuit in King County.
The abandonment notice is the latest turn for a property that has long been the subject of redevelopment.
'Savvy investors cautiously love distressed properties,' said Harrison Laird, a principal with Lee & Associates commercial real estate services. Laird specializes in the sales and leasing of office properties throughout the South Sound.
'Often, publicly known injunctions and notices spur activity on a property, though the investor pool will generally be targeting the absolute minimum bid it'll take to buy the property,' Laird told The News Tribune.
Steven Bender is an associate dean and professor at Seattle University School of Law and is an expert in real estate law.
In response to questions about the abandonment designation, Bender said many factors would play a role in the site's future, with whoever is in charge of the property opting for as cost-effective offloading as possible.
In such cases, parties involved typically 'assess the current highest and best use of the property, the rental market conditions, and the transferability of any existing development permits,' he noted.
According to city media representative Maria Lee, 'The development permits have all expired so new permits would be required.'
Bender noted the 'abandonment' distinction likely wouldn't affect any new marketing of the site. Last year, The News Tribune reported that the property was being offered for just over $2 million.
'It probably doesn't matter,' Bender said. 'I mean, it's mostly a matter of getting it into the hands of somebody who's going to redevelop it, and what that will take.'
As The News Tribune reported last year, one lawsuit noted that the property had been used by 725 Broadway LLC to secure a loan that eventually exceeded the property's value. Its most recent assessed value, according to Pierce County, is at just under $2 million.
As for a lender taking on site prep, 'Most lenders are not going to be in the business of demolishing something,' Bender said. 'Generally, that would be very unusual for a lender to want to reach in his pocket and pay more on a site.'
iCap Trust in December announced that iCap Enterprises and its affiliated debtors had completed Chapter 11 that included a 'landmark Ponzi ruling' under a court-approved joint plan of liquidation, developed with an Official Committee of Unsecured Creditors.
The trust was established to recover assets for more than 1,800 defrauded investors, primarily from overseas.
The Ponzi ruling was part of an October findings of fact, conclusions of law, and order confirming a modified amended joint Chapter 11 Plan of liquidation of iCap Enterprises and its affiliated debtors.
As part of the court-approved plan, the Tacoma property was one of two iCap-related entities listed under 'abandonment of certain estate assets.'
The determination meant that the property 'shall be abandoned by the Debtors and their Estates pursuant to Section 554 of the Bankruptcy Code and shall not be considered iCap Trust Assets.'
A co-trustee for the iCap Trust did not respond to questions from The News Tribune about what's next for the Tacoma site.
The other related entity abandoned in the bankruptcy case was iCap's interest in Airlink Holding LLC and Airlink Markets LLC, which operated in the securities industry. iCap Enterprises was the parent company for Airlink.
In October, the director of the Washington State Department of Financial Institutions entered a final order against Airlink Markets, LLC, finding that 'an officer, director, partner, or person performing similar functions for ... Airlink Markets engaged in dishonest and unethical business practices in the securities industry, and those practices justified the revocation of the respondent's broker-dealer registration under to the Securities Act of Washington.'
As a result, Airlink Markets was ordered to pay a $10,000 fine and $500 in costs, and had its broker-dealer registration revoked.
Previous reporting from The News Tribune contributed to this report.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Axios
23 minutes ago
- Axios
Exclusive: Crypto security startup Hypernative raises $40M
Hypernative, a provider of real-time threat prevention for crypto companies, raised $40 million in Series B funding, its founders tell Axios exclusively. Why it matters: Security remains a major barrier to mass adoption of crypto, which is plagued by increasingly sophisticated hacks and exploits. How it works: Hypernative's technology monitors blockchain transactions to detect and respond to potential threats before they happen. "We know how to classify that preparation and then essentially front-run their attacks before they're actually triggering it," Hypernative CTO Dan Caspi explains. Its platform identifies patterns of on-chain preparations that attackers typically make before launching an exploit. Using AI and machine learning models, it tracks and analyzes on-chain and off-chain data sources, simulating transaction outcomes to protect users and assets in real time. State of play: The crypto security market is becoming increasingly competitive, with numerous startups offering solutions to prevent hacks, fraud and exploits. By the numbers: Israel-based Hypernative serves more than 200 customers, protecting assets totaling over $100 billion. In 2024, the platform detected over $2.2 billion in potential losses from hacks and exploits, a 22% increase from the previous year, the company says. "We've already saved huge amounts of money in real time for customers and non-customers," Hypernative CEO Gal Sagie says. Case in point:"Just yesterday, there was a protocol that was not a customer of ours, and we managed to reach out to them and saved around $10 million," he adds. Zoom out: Traditional financial institutions are increasingly becoming interested in blockchain technology, driven by regulatory clarity and institutional demand for digital assets. "With the new regulation and the new administration, we see a lot of demand from more traditional financial institutions," Sagie says. Zoom in: Ten Eleven Ventures and Ballistic Ventures led the round, which included participation from StepStone Group, Boldstart Ventures and the IBI Tech Fund.
Yahoo
25 minutes ago
- Yahoo
More WA Rite Aid and Bartell sites added to chains' store shutdown list
Two more proposed store closure lists have been entered into the court filings of Rite Aid's bankruptcy case, and they include more Pierce County locations. The lists, released June 5 and June 6, included 25 and 207 store locations nationwide, respectively, with a combined 23 sites in Washington. The bulk are Rite Aid drugstores, except for four Bartell Drugs — one of those in Tacoma. The Seattle-based Bartell drugstore chain is a subsidiary of Rite Aid. For Pierce County, the new closure lists include: ▪ Rite Aid at 5700 100th St. SW, Suite 100, Lakewood ▪ Bartell Drugs at 3601 Sixth Ave., Tacoma ▪ Rite Aid at 12811 Meridian St. E., Puyallup ▪ Rite Aid at 21302 State Route 410 E., Bonney Lake In Thurston County, the June 6 list included the Rite Aid at 305 Cooper Point Road NW. Other Washington locations on the new lists include: ▪ Rite Aid, 2131 SW 336th St., Federal Way ▪ Rite Aid, 10407 SE 256th St., Kent ▪ Rite Aid, 3116 NE Sunset Boulevard, Renton ▪ Rite Aid, 17615 140th Ave. SE, Renton ▪ Rite Aid, 7500-A 196th St. SW Lynnwood ▪ Rite Aid, 2860 NW Bucklin Hill Road, Silverdale ▪ Rite Aid, 11700 Muilteo Speedway No. 500, Mukilteo ▪ Bartell Drugs, 2222 32nd Ave. W., Seattle ▪ Rite Aid, 4514 S. Regal St., Spokane ▪ Rite Aid, 19475 7th Ave. NE, Poulsbo ▪ Rite Aid, 1901 N. Steptoe St., Kennewick ▪ Bartell Drugs, 419 NE 71st. St., Seattle ▪ Rite Aid, 1065 NW Gilman Blvd., Issaquah ▪ Bartell Drugs, 11020 19th Ave. SE, Everett ▪ Rite Aid, 364 Triangle Shopping Center, Longview ▪ Rite Aid, 3227 Northwest Ave., Bellingham ▪ Rite Aid, 1329 Lee Blvd., Richland ▪ Rite Aid, 12420 N. Division St., Spokane Rite Aid is closing hundreds of stores nationwide amid its latest bankruptcy. CVS Pharmacy has agreed to acquire the prescription files of 625 Rite Aid pharmacies across 15 states, as well as acquire 64 Rite Aid stores in Idaho, Oregon and Washington. Other stores that remain on Rite Aid's website as open in Pierce County include two stores in Tacoma (1912 N. Pearl St. and 7041 Pacific Ave.) a store in Spanaway and three locations in Puyallup. Bartell is set to have one Pierce County site remaining, in Gig Harbor. With the new filings, the Washington stores slated for closure now total nearly 50. No dates have been announced for when the stores will shutter. Oregon had several additional stores listed for closure, and Idaho had one. See previous coverage for earlier closure lists.
Yahoo
25 minutes ago
- Yahoo
Nonprofit that operates group homes for homeless youth plans Tacoma expansion
A Gig Harbor-based nonprofit is buying houses to provide a place for unhoused young people to get back on their feet. While their model has shown some success at a small scale, the organization is expanding with a new home in Tacoma. In 2018, Harbor Hope Center received its home through a private, anonymous donor. The center's executive director Daniel Johnson told The News Tribune the home was donated after the owner's book club read a book about alleviating poverty. The book club learned in 2018 roughly 150 students in Gig Harbor were couch surfing without a permanent place to live. At the time, Harbor Hope Center was a new organization aimed at breaking the cycle of homelessness among youth and young adults. With the first home, its model was realized. Johnson told The News Tribune there is a 'thin line' between being housed and homeless, especially for youth and young adults. 'Homelessness starts somewhere early,' he said. 'And it can happen to any young person that doesn't have family support.' Harbor Hope's goal is to provide that support. Shortly after getting the first home, the organization acquired a second home in the same neighborhood with funding from the Washington State Department of Commerce's Housing Trust Fund. The second home was acquired for about $265,000. The two houses now serve as group homes for up to 12 people between the ages of 18 and 24. While staying at the home, they receive mentorship, life-skills coaching and therapy with the goal of finding permanent housing and self-sustainability. Brandon Vuylsteke, the operations manager for the homes, said residents receive one-on-one case management from staff customized to the client. They participate in career- and life-skills workshops and substance-abuse therapy if necessary. Harbor Hope also offers transportation to get clients to school, work or appointments. Johnson said it is through early intervention that the organization aims to prevent young people from entering a cycle of chronic homelessness. 'We get someone living on a couch to never be on a couch again,' he said. According to Harbor Hope Center, its program has served 135 young people and has helped 95 into permanent supportive housing. Those who are not referred into permanent supportive housing often are reunited with family or referred into other programs. Johnson said people usually stay at the group homes between three and five months before finding a more permanent housing solution. Vuylsteke said young people usually stay an average of 90 days. According to him, the broad majority of people exit the group homes after receiving a referral into Pierce County's Rapid-Rehousing program. 'People are here because they are trying,' Johnson said. Vuylsteke told The News Tribune the organization is looking to expand both its connections with community organizations who can refer Harbor Hope Center new clients. Recently, it has been working with Coffee Oasis, a homeless youth-assisting nonprofit with locations in Tacoma, Port Orchard and Bremerton. They also work with local school districts such as the Peninsula School District and Tacoma Public Schools. Tacoma Public Schools is recognized to have one of the highest populations of housing insecure students in the state. The McKinney-Vento Homeless Assistance Act is a federal law to protect students experiencing housing instability, and it ensures that homeless children and youth have access to a public education. The McKinney-Vento Act defines homeless children as 'individuals who lack a fixed, regular, and adequate nighttime residence.' According to Tacoma Public Schools spokesperson Kathryn McCarthy, the district served 2,685 students through McKinney-Vento programming during the 2023-2024 school year. Of those, 414 were considered 'unaccompanied youth.' McCarthy told The News Tribune the district recorded 2,389 students who were experiencing homelessness or considered 'unaccompanied youth' during the 2024-2025 school year. Additionally, she said there are 202 students in foster care. Johnson said Harbor Hope Center is beginning its expansion into Tacoma and is close to closing a deal on a house in the city which will serve as another six-person group home. Johnson said the organization has received generous community support towards its existing group homes, with an estimated $50,000 to $60,000 in contributions. He told The News Tribune a local church volunteered to repair and paint a backyard fence and local Home Depot stores contributed materials and labor to completely rebuild the deck at one of the houses. 'Our goal is to have the nicest house in the neighborhood,' he said.