"We gave an enormous amount of tours," says Mark Forrester with Hendricks & Partners' Phoenix office, who partnered with Art Wadlund of the company's Tucson, AZ office to represent the seller. "I think people are seeing values in Phoenix as prices begin to shift. Given the ask on this, potential buyers think the market will start to improve over time."

Forrester tells GlobeSt.com that Villagio Apartments at 1133 W. Baseline Rd. had been upgraded within the past two years and was in good condition at the time of the sale. He points out that the buyer also owns other assets in the area. "They were a strong buyer that made a good offer," Forrester comments.

Before its foreclosure, the 25-year-old Villagio Apartments had been owned by Bronco Real Estate Corp. of San Rafael, CA. Bronco had acquired the complex, then known as La Contenta, for $41 million in July 2006, and changed the name. Thomas Fair, who heads up Bronco Real Estate confirmed a recent report in Business Real Estate Weekly that the company had defaulted on a $39 million loan secured by the property late last year.

Forrester says Stonecraft obtained a new loan from Fannie Mae to finance the acquisition. The complex's occupany was just over 90% at the time of sale, he adds.