"It was a very attractive deal," Danny Lee with Sperry Van Ness' Phoenix office tells GlobeSt.com of the transaction that turned over the Terra Villa Apartments to the Southern California investment group, Terra Villa Apartments LLC, for a cut-rate price hovering $28,000 per unit. The low per unit price lured at least four other investors into the bidding for the 4730 N. 19th Ave. asset, including several who made backup offers even after the property was under contract, Lee says.

The complex's historically high occupancy rate of about 90% also enticed buyers once under contract, Lee says, adding the measuring stick dipped to 70% due to the new owner's tougher tenant standards. "The buyer wanted the seller to screen harder for prospective tenants and he did. So at the time of escrow, we had about 30 vacant units out of 140," he says of the empty stock. "The buyer knew he was going into this with a high vacancy rate, but that didn't scare him."

The two-story, garden-style, gated complex is comprised of 46 studios, 72 one-bedroom apartments and 22 two-bedroom units that usually rent quickly for the $495 to $695 per month levy, representing a solid investment return for the new owner, according to Lee.

Trans Pacific Enterprises of California was represented by Lee and Neil Sherman, also with Sperry Van Ness. David Sanders of Asset Growth Management in San Diego brokered the buy side.