The Hotel Alder was originally built by the Southern Pacific Railroad as a terminus hotel and was popular with traveling businessmen. Over the years, the hotel declined, eventually turning into low-priced single-room occupancy (SRO) hotel. In 1974, Art McFadden purchased the building. In 2004, McFadden sold the three residential floors to the Portland Development Commission (PDC). The PDC then sold the space to the Central City Concern (CCC), a local non-profit agency devoted to assisting the homeless get back on their feet. CCC began rehabilitating the building to provide for 99 low-income housing units.