“The property is deed restricted. The land use restriction designation requires that the 100% of the property be leased to those with 60% of area median income,” says Cheyne.

Built in 2000, the 96-unit property features one-, two-, three- and four-bedroom floor plans. Property amenities include a swimming pool, business center, child-care center and laundry facility. Select units have washer and dryer hookups.

“This property really caters to families,” Cheyne says. “It's extremely unusual to see a four-bedroom unit in a property built in 2000. There are also very big patios for this year of building.”

The community is located convenient to State Route 60 and Loop 202, providing residents access to the entire Mesa area. Villas de Merced is fewer than two miles from downtown Mesa and two and a half miles from Mesa Country Club. Top employers in the immediate areas include Banner Desert Medical Center, Mesa Community College, Hospice of the Valley and General Dynamics C4 Systems.

Cheyne says the deal was a buy and hold cash flow acquisition.

At 6.4 percent in the third quarter, Phoenix metro vacancy was down 20 basis points from one year ago. Operators advanced rents 2.6% during the last four quarters to $837 per month.