"The properties are in great shape and the occupancies are starting to come back," explains Mark Forrester with Hendricks & Partners' Phoenix office. Forrester has the portfolio marketing assignment with H&P colleague Ric Hollway and tells GlobeSt.com that the lenders opted because they believe there's a good chance of getting a good price on them. "They're offering possible seller financing to help increase the purchase price and attract better values," Forrester says.

The properties in question were part of a massive portfolio Bethany purchased from Bascom Arizona consisting of 5,178 units. Forrester says one of the assets has gone through foreclosure, while the others are in bankruptcy.

"They bought at the top of the market and probably were over-leveraged. They spent money on the buildings, but because of the market conditions, couldn't get refinancing," Forrester says. He's adamant that the properties are in no way physically distressed. Both Bethany and Bascom put large capital investments in the upgrades. "They're great properties," he says, adding that the upside is leasing stabilization. The portfolio is approximately 85% occupied across the board.

"Occupancies are coming back now, but are still below the market average in most instances," Forrester remarks. "Part of the upside is to get them back to where the market is right now."

At this time there is no best-and-final offer deadline. Forrester says one-offs and full portfolio offers will be considered.