Lazovick notes, “This wasn't your typical 1980s-build condo conversion. The property is 100% two-bedroom units with garages and a portion of the units are townhomes with private backyards.

“Acquisition opportunities for Scottsdale apartments are few and far between. Much of the stock, like Scottsdale Haciendas, was converted to condominiums before the downturn. However, only about half of the units at Scottsdale Haciendas were sold to individual buyers as the conversion happened relatively late in the last cycle. The limited supply of Scottsdale rentals coupled with billions of dollars currently being invested in development projects in the surrounding hubs of Old Town Scottsdale and ASU's Tempe campus, appealed strongly to the buyer, There has been a lot of investment in the area: SkySong, which is a unique private and public partnership involving ASU; the hubs of Old Town Scottsdale and ASU's Tempe campus.” continues Lazovick.

The seller, Texas-based Granite Reef Properties LLC, exits the Phoenix Valley market with the sale of Scottsdale Haciendas.

“The South Scottsdale rental market had really taken off recently. The average rental rate has soared up over 13% since 2013. The property has consistently had occupancy in the mid to high 90% range. These factors, combined with an improvement in the South Scottsdale condo market and recent cap compression presented the ideal circumstances for the Seller to sell his only commercial real estate asset in Phoenix. Scottsdale has always been a good rental market, but it's really hot right now. There has been about $2 billion invested in South Scottsdale and North Tempe and it's really adding to the quality of the market,” Chang adds.

Scottsdale Haciendas is a two-story condominium community located at 985 N. Granite Reef Rd. in Scottsdale. The property was built in 1985 as apartments, converted to condos in 2006 and sits in the McDowell Corridor of the South Scottsdale submarket. Located near the Loop 101 freeway, Old Town Scottsdale, and ASU's Tempe campus, residents enjoy easy access to the valley's premier employment and entertainment options. Scottsdale Haciendas is entirely comprised of two-bedroom garden-style and townhome units. All units have been renovated with condo grade finishes and have individual HVAC systems, full size washer/dryer, garages, private patio/balcony and storage space. Select units have private backyards. Common area amenities include two swimming pools, spa, barbeque grills and ample parking.