"You have 50,000 potential renters just six blocks away," Nicholas L. Miner with Colton Commercial Real Estate of Tempe tells GlobeSt.com. That unending list of potential tenants caught the eyes of investors, three of whom put down money on the 43-unit apartment complex within the last year only to have the deal fall through because buyers were unable to work out a licensing agreement with the Salt River Project, which owns an irrigation pipeline that runs by the property, according to Miner.

But that detail didn't stop University Palms Apartments LLC. The Scottsdale investment group picked up the 1207 E. 8th St. complex for about $3.8 million from seller Calle de Lecheria LLC of Tempe in a deal that cost the new owner just $72,500 per unit, a sum substantially less than comparable properties.

"It's a great property, a pride of ownership property," says Miner, who along with Kevin Todd, also with Colton Commercial Real Estate, arranged the deal for the seller. Brent Smith Jr. with University Palms Apartments LLC negotiated the transaction on behalf of the buyer.

Situated within walking distance of Downtown Tempe and ASU, the three-story, garden-style complex, built in 1998, features two-bedroom, two-bath units with monthly rents averaging about $700. A pool, barbecue area, on-site laundry facilities and covered parking add to the attraction for students, many of whom rent for their entire four-year stay at ASU. The influx of students every year also has kept vacancy rates low at the 38,227-sf complex, where only two of 43 units were vacant at the time of sale.

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