Scott D. McPherson of Phoenix-based Capital Advisory Group represents the buyer-developer. McPherson tells GlobeSt.com that the 16-year-old complex was developed as for-sale units, but changed to leased arrangements because of the economics of the time when it delivered. He and Eric T. Inabinet arranged the acquisition financing with an unidentified lender.

McPherson says the average unit size is 1,262 sf. All units are two bedrooms with some two-story lofts. After the conversion is completed, McPherson says the units will sell for an average price of $131,000. Sales are anticipated to begin in the third quarter. He believes the anticipated cost represents a good entry-level price point since the complex is located in a "high-end" area of Tucson.

Like the Scottsdale Courtyard condo-conversion in Scottsdale, McPherson says the loan is structured with collateral release provisions allowing the sale of individual units. He explains the collateral is based on smaller and smaller percentages as units sell. The structuring is obviously more risky for the lender, but helpful to the developer because it allows for the closing of condos before all property is sold. McPherson says there is some accelerated pay-down requirements in the loan structure to offset lender risk.