HSL Properties' executive vice president Omar Mireles explains that the transaction was a short sale. Principal Life had a loan on it, he adds, and was operating it on a deed in lieu of foreclosure. He tells GlobeSt.com that cash was used to buy the complex at 11105 N. 11th St., though HSL Properties will seek financing after closing on Cabrillo Apartments.

"This is a 1987 build," he comments. "It's a little older than what we typically like, but had been renovated." The majority of the complex, in fact, had been renovated during the early to mid 2000s in anticipation of conversion to condominiums. However, when San Diego-based Fairfield Residential acquired the asset from Jackson Properties for $30 million in 2006, the condo craze had passed. During its ownership stint, Fairfield did its own upgrades to the complex, with the result ending up a "B-plus asset, from the standpoint of the age," Mireles points out. "This was very well-maintained, which is typical of a Fairfield product."

Casa Santa Fe is 91% occupied, and has one-, two- and three-bedroom units, measuring from 652 square feet to 1,158 square feet. Eastdill Secured represented Principal Life, which handled negotiations, while HSL was self-represented.

Mireles says the Casa Santa Fe buy is the first transaction of what is likely to be an active acquisition year for HSL Properties. Though there are no specific unit acquisition goals for 2010, Mireles says he'd be happy to see a few thousand more units tucked away into the company's portfolio.

"We're absolutely looking to widen our footprint in Phoenix and Tucson," he adds. "There is quite a bit of opportunity brewing out there, and we're very interested in moving forward."