The Memphis multifamily market fared well during the third quarter amid a difficult economy, as occupancy rates and absorption improved, according to the latest data from CB Richard Ellis Memphis.

Perhaps the biggest story during the July-through-September quarter, however, came just as the period was ending. In the final week of September, Philadelphia-based Resource Real Estate Inc. bought the Wyndridge Apartments for $9.5 million in a special warranty deed.

The company bought the troubled Hickory Hill North complex apartment complex as an REO (real estate owned) property, which means it was sold by the original lender following an unsuccessful foreclosure auction.

Wyndridge contains two separate parcels – 6206 Knight Arnold Road and 6277 Lake Arbor Drive – and sits at the northeast corner of the intersection of Knight Arnold and Ridgeway roads.

Blake Pera, senior vice president for CB Richard Ellis’ multifamily division, told The Daily News last week that the arrival of Resource Real Estate was a boon for the local apartment sector, which has struggled to garner high-dollar deals because of a tight capital market.

“We’re always bringing in new investors to the market that see the opportunity here, but certainly it’s a sizeable transaction in an environment nationally that is seeing a lot fewer sales than we’re accustomed to the last few years,” Pera said, adding that the deal could signal an upward shift in the market.

Memphis-area occupancy rates rose 0.2 percent to 89.7 percent marketwide. The 1990s construction segment (apartments built between 1994 and 1999) led the way with an overall 92.1 percent occupancy rate, an improvement of 1.7 percent.

Within that category, Downtown was tops at 96.3 percent after enjoying a 4.2 percent bump in occupancy.

Memphis notched a positive absorption rate of 775 units, more than double the absorption rate of 314 units the previous quarter. Most of Q3’s absorption came in 1990s construction, which saw 720 units absorbed.

Rental rates declined 0.2 percent to an average of $709 per month. And construction remained stable with 750 units delivered to date. Another 371 units are slated to come online in the final quarter of 2009.

In addition to the Wyndridge deal, six arms-length, REO apartment transactions closed in the quarter. Deals that exceeded $1 million included Park Tower in Midtown, which sold for $1.7 million; Forest Park in Frayser, which sold for $1.1 million; and Whitney Manor in Frayser, which sold for a $1.1 million.