PRESCOTT VALLEY, AZ-A Scottsdale investor, taking on a HUD loan to close the deal, has bought the 226-unit Terraces at Glassford Hill for $23.5 million.

Casa Santa Fe Apartments LLC got the 5700 E. Market St. development for less than the $25.5-million ask partly because of the HUD loan attached to it. "This was marketed for awhile because of that loan, which expires in 2013," explains Robert Chester of Realty Executives' Phoenix office. "When that type of a loan is attached to a property, it can make it a difficult sell."

Chester, the buyer's broker, tells GlobeSt.com that the seller and its developer, Glassford Hill Terraces Phase I LLC of Phoenix is moving out of the multifamily industry to focus on developing and selling retail and office buildings. Chuck LaBenz of Phoenix-based Hendricks & Partners represented the seller.

The 97%-leased Glassford Hill Terraces, built in 2003, has 14 lofts measuring 937 sf; 36 one-bedroom units, each 746 sf; and 176 two-bedroom apartments, ranging from 1,005 sf to 1,128 sf. The monthly rent ranges from $820 to $990.

Though the Prescott Valley area is experiencing its fair share of condo conversions, Chester says the new owner plans to keep Glassford Hill Terraces strictly as a rental property. And, the game plan is to hold it as an investment for 10 to 12 years, he says."We've represented this buyer for about 20 years," Chester says. "We've bought and sold 3,000 to 4,000 units over the years for him so he's not new to any of this."