Phoenix-based Montevida LLC is the seller of the two-year-old project located in the north central part of Phoenix. David Fogler, managing director of the Phoenix office of Insignia/ESG, tells GlobeSt.com that the property is a high-quality development in an urban infill location. Occupancy at the time of the sale was 93%.

"With the slowdown in the economy," Fogler said in a prepared statement, "investors have to be extremely careful about not only what they buy, but where they buy. This transaction is a sign that institutional buyers are optimistic about the Phoenix multifamily market."

Fogler says the property was brought to the market in December 2001 and just recently closed. The average unit size is 800 sf and the average rent is just over $800. The property was developed by Gray Development, which specializes in urban infill projects. He says there is tremendous demand for this type of well-located, high quality product, but unfortunately, a shortage of supply.

Fogler was joined by Insignia/ESG associate Steve Nicoluzakis in brokering the deal. The north central submarket has a vacancy rate of 9.5% and an average rent of $668 per month. Metro Phoenix, as a whole, has a vacancy rate of 8.8% and an average rent of $690 per month.