Situated on 2.1 acres at 1737 W. Desert Cove, Villa Mira Monte is comprised of 10 garden-style buildings. "This is a class B property in a C location," says Kevin Hanford, an adviser with Sperry Van Ness' local office. "This is a challenging area in Phoenix withhigher vacancies." He and Julie Vaughn, also with Sperry Van Ness, brokered the deal. Hanford tells GlobeSt.com that Villa Mira Monte received three offers. "It's a beautiful property," he says. "And there's upside in the rents of about $75 per unit." Built in 1988, the two-bedroom units, each 850 sf, reel in $525 per month.

According to Hanford, the property was 48% occupied at the close of escrow. "There was a master lease move-out during escrow," he explains, adding it blocked traditional financing because "lenders wouldn't provide a loan on a property that wasn't cashflowing." As a result, the seller offered to carry a $970,000 loan for three years and provide a rent guarantee for three months to get the deal to the closing table.