"I've had 30 people call from Los Angeles or the California area in the last 10 days looking for properties," Ric Holway, with Marcus & Millichap's Phoenix office tells GlobeSt.com. "On most good properties, there's definitely a lot of activity."

That competition worked well for Holway when seller Dave Ardell of Ardell Investments LLC of Santa Barbara, CA, put his 64-unit of Los Olivos apartment complex on the market. Within days of listing the nine-building complex at 7625 N. 19th Ave. in Phoenix, at least five investors, several from California, were scrambling to place bids.

But it was a local buyer, Mathew and Donna Orzol of Scottsdale, who won out with an offer of slightly more than $3.3 million in a deal that delivered nearly $2 million in profit for the seller. Ardell purchased the property in 1995 for $1.4 million.

Despite the influx of California money, Ardell selected the Orzols because, not only were they in a 1031 Exchange, but they also are local investors who would manage the property themselves, said Holway, the sole broker on the deal.

For the new owners, the deal offered a positive cash flow on an investment property that was 92% occupied. The garden-style complex, which fronts on 19th Avenue just south of Northern Avenue, is comprised of 16 three-bedroom and 48 two-bedroom units, all with two baths, along with a pool, spa, barbecue area, covered parking and interior amenities that include appliances, ceiling fans and walk-in closets.