"The difficulty was with Bank of America in assuming the existing financing. That was the biggest obstacle," Joseph Yu, with Advanced Equities here, tells GlobeSt.com of the drawn-out negotiations that finally ended in the complex's sale. "That Bank of America loan scared off every single buyer."

It wasn't until Colter Meadows Condominiums LLC, a pair of investors from Park City, UT and Oakland, CA stepped in with a full-price offer of $3.3 million and a willingness to work out the financing difficulties that the deal finally took shape. Even then, the sale almost fell apart when the buyers' 1031 Exchange property failed to close on time, delaying the closing on the 3010 W. Colter St. complex. But after eight months in escrow, seller William Hodge of Bend, OR was finally able to transfer the title.

Yu says the new owners liked the property because of its strong cash flow--even with a 12% vacancy rate--and planned to convert the two-bedroom units into "for sale" condominiums. The Bank of America financing agreement, however, will delay that planned conversion until the new owners can pay off the note.

"Their strategy now is to run the property and once they loan is due, they can implement their plan of selling off all the units individually," says Yu, who represented the seller in the transaction. "They saw that in the future they could create a lot of value."

The property's sale was arranged by Yu and the buyer's agents, Mary Gilanfarr of MGI International Real Estate and Scott Barrie of Advanced Equities.