Rob Porter and Earl Ricker acquired the complex at 1073 E. Chandler Blvd. from Denver Thomas Properties Inc., led by Jeff Thomas of Englewood, CO. The Phoenix investors got the 16-year-old property for $425,000 less than its original asking price because rent rolls dropped from $30,000 per month to $20,000 after 9/11, says Karl Abert of Marcus & Millichap in Phoenix. He says Chandler's transient apartment source subsequently dried up and dropped occupancy to 85% from 98%.

Denver Thomas Properties bought the complex about six years ago. Its strategy is to buy a replacement property, says Abert, who along with Marcus & Millichap's Peter Katz brokered the deal for the seller. Katz and Darrell Moffitt, also of the Marcus & Millichap office, represented the buyers.

According to Abert, Porter and Ricker are condo conversion specialists. Abert believes Aspen Springs is a perfect candidate because it has a low number of units. Conversions are more readily doable for properties with 50 to 75 units. Abert says Aspen Springs' developers finessed the project so that each unit has a tax parcel number, another facet that makes the buy particularly amenable for a conversion.

Abert is confident apartment conversions will grow as an investor sector despite some inherent difficulties associated with the undertakings. Higher entry-level prices for single family homes, now hitting $150,000 to $200,000, are fanning the fire for the trend. Condo prices are ranging from $85,000 to $120,000, making them the best course for beginning homeowners who want to build equity.