Paul and Kelly Brock of San Jose became first-time Arizona buyers when they purchased the 27-unit property at 426 W. 9th St. in a $550,000 deal made even sweeter by the complex's under-market value. Greg Thielen with Hendricks & Partners tells GlobeSt.com that the 26 studio and single one-bedroom complex, built in 1963, had a historical vacancy rate of about 20%, making it undervalued for the market.

The buyers, however, saw it as an opportunity to not only offset a 1031 Exchange, but to invest in a complex that had a growth potential. Thielen said the complex was one of several multifamily buildings that seller O'Carroll Properties I LLC of Tempe was liquidating as part of its efforts to move into the redevelopment and new construction field.

"The seller is building a loft project in Tempe and is rehabbing property at 6th and Roosevelt in Phoenix and wanted to concentrate on that," said Thielen who along with John Kobierowski, also with Hendricks & Partners, represented the seller in the transaction. The buyers were represented by Pro Star Realty.