David Kaufman, financial analyst for portfolio owner and developer Gray Development Group would not comment on the loan delinquencies, but did say the Phoenix-based company's intent is to satisfy the default as quickly as possible. "We're talking with him daily and it's our hope we'll reach a resolution very shortly," Kaufman says. He tells GlobeSt.com that no other Gray Development property is facing foreclosure.

The Peoria complexes involved are the 246-unit Barossa at Trianna at 13720 N. 88th Ave. and the 485-unit first phase of Indigo at Trianna at 1330 N. 88th Ave. In Phoenix, the assets are the 204-unit Barossa at Paradise Ridge at 17950 N. 68th St. and the 348-unit Ninety Degrees at Paradise Ridge, located at 18440 N. 68th St. According IonData in Mesa, AZ the trustee is listed as Trustee Corps. in Irvine, CA.

Brad Goff, principal with Apartment Realty Advisors' Phoenix office, is uninvolved with the Gray portfolio. He is, however, unsurprised that buildings constructed in the past two to three years such as these might be headed for trouble. There will be similar situations to what Gray Development is undergoing in the near to mid-term, he predicts. A soft rental market combined with maturing loans will almost ensure it.

"It's inevitable, especially on today's open market," Goff tells GlobeSt.com. "Any building that was built within the past two years isn't worth the debt on it. That's not just here, it's across the country. A lot of the brand-new, nice property will be foreclosed on."

If there is any good news in any of this, he continues, it's that valuations are becoming clearer. Furthermore, a market is forming, and one that isn't focused solely on distressed assets or foreclosures. "Prominent sellers such as Equity Residential and AIMCO are also selling, and what they're selling isn't distressed," Goff explains. "We'll see more sales in the latter part of 2009, but they won't be all distressed assets."