The deal marked the largest single portfolio purchased by John and Linda Blivins of Phoenix, owners of 11 apartment communities with more than 11,000 units in the Valley. The couple took over ownership of the garden-style communities after seller Anne Bryant, whose husband built the apartments during the 1970s, decided two years ago to divest of the holdings as a single portfolio.

Word-of-mouth marketing eventually led to an offer by a non-profit group, but the deal fell through when the organization was unable to obtain the needed tax credits, Ric Holway, senior investment associate and director of the National Multi-Housing Group for Marcus & Millichap, tells GlobeSt.com. "There's very few people who can buy this kind of portfolio or even understand it because of the half contracts," said Holway, explaining that each community operates under federal Housing and Urban Development Section 8 subsidies which pay a portion of tenant rent.

But the Blivins understood it. They already own another HUD property, Bethany Glen in Phoenix and realized the value of owning communities with a guaranteed income from the government and vacancy rates so low that there are 12-month waiting lists just to rent an apartment.