Thanks to the University of Wisconsin as well as state government offices in the state's capital, vacancy here is a tight 4%. The two complexes approximate that, with a 2% vacancy rate at Trinity Park and 5% vacancy at The Woodlands.

The offering price is at a capitalization around 9%, says Scott Harris of Marcus & Millichap Real Estate Investment Brokerage's Chicago office, who won the listing for the properties. Multifamily property has been trading in the low 8% to mid 9% range, Scott notes, and the price reflects the complexes' older age.

Both complexes were built in 1969 with a mix of one-, two- and three-bedroom apartments, and are about five miles from the University of Wisconsin campus, Scott says. Trinity Park has seen vinyl siding, parking lot repairs, common area hallway and unit upgrades. Capital improvements at The Woodlands have included exterior painting, common hallway redecorating and unit renovations.

Because Madison is not on many institutional buyers' radar screen, Scott expects the 256 units to be traded to a private investor.