SCOTTSDALE, AZ-Melcor Developments Ltd. has made its second fractured condo buy in Arizona, paying $8.4 million for 82 units that are part of the 447-unit Edge at Grayhawk. The buyer, a publicly-traded Canadian property company based in Edmonton, Alberta, acquired the units out of foreclosure from MidFirst Bank, an Oklahoma City-based financial institution.

“There is substantial investor interest in buying fractured condo deals in bulk, not necessarily on an individual unit level,” says Nick Ingle, an investment sales broker with Hendricks & Partners’ Phoenix office. He negotiated the deal, along with Mark Forrester, Ric Holway and Greg Thielen.

“Since MidFirst Bank took the condo units in early 2010, they have continued to sell them on a one-off basis, but after they received a number of off-market offers to acquire the remaining units in bulk, they decided to shift their strategy,” Ingle explains.