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PHOENIX-More than 20 years after going vertical with the180-unit Paradise Foothills, a local developer has opted to sellthe class B complex at a 5.5% cap rate. A Portland, OR investor,buying its third property in the area, has paid $16.4 million andplans an additional million-dollar upgrade of the complex'sinteriors and exteriors.

According to CB Richard Ellis vice chairman Sean Cunningham, the93%-leased asset at 12231 N. 19th Ave. was put on the block becausePicerne Development Corp. is divesting various class B assets fromits portfolio. Paradise Hills is its last class B in the Phoenixmetro. "They're repositioning that money into new construction inPhoenix and Las Vegas so this is a strategic move for Picerne,"says Cunningham, who represented the seller with CBRE partner TylerAnderson.