DeLong used a 1031 Exchange of a 10-unit complex in Phoenix to drive the deal. Pete TeKampe of the Phoenix office of Marcus & Millichap represented DeLong and seller, Mohamadali Abolahrar of Rancho Palos Verde, CA in the sale.

TeKampe tells GlobeSt.com that Abolahrar is a pharmacist whose real estate assets include the Rocksberry Pharmacy in Brentwood, CA. He wanted to sell the multifamily holding so he could expand his pharmacy interests, says TeKampe. The seller originally was seeking $1.1 million for the 16-year-old property. TeKampe says the complex was on the market for about 45 days and baited eight offers.

Spinnaker Cove has eight one-bedroom units and 14 two-bedroom units. The units range in size from 540 sf to 735 sf. Rent brings in $495 to $595 per month.

A Marcus & Millichap report says increased concessions have nullified the average asking rent increase by almost 2%. TeKampe, author of a recent report for the Arizona Multihousing Association, said the most common concessions are $199 move-in specials and offers for one month of free rent in exchange for a 12-month lease.

Widespread concessions are coming in a market with an average 10% vacancy. That, TeKampe says, is up almost a full percentage point from a year ago. The average takes into account some submarkets with vacancy as high as 26%, making the metro area ripe for concessions.