Woodcrest I LLC and Woodcrest II LLC acquired the 95%-leased complex at 800 Forest Meadows St. from Beverly Hills, CA-based Flagstaff Village Apartment Ltd., a family partnership that developed Woodcrest in 1991. The buyer assumed a $9.1-million conduit loan to close the sale. The loan, bearing a fixed-rate interest rate of 6%, is due in August 2012.

Chuck LaBenz, a partner with Phoenix-based Hendricks & Partners, says the class B-plus Woodcrest is one of the nicest assets in the city. "We had a lot of interest because nothing in Flagstaff has changed hands for many years," LaBenz tells GlobeSt.com, adding Woodcrest received five offers before going under contract to the San Diego buyers. "Prices for housing in Flagstaff have skyrocketed and good multifamily housing is in demand."

LaBenz, partnering with Hendricks' Bob Bruno, says the buyers once lived in Arizona and are partial to mountain communities like Flagstaff. "They spent some time in Flagstaff and had owned property there before," he says. "When they saw this property, they decided to buy it because they think they can do some minor changes and make it a class A property."