Bob Morey, senior director for Dallas-headquartered Holliday Fenoglio Fowler LP's Los Angeles office, tells GlobeSt.com that the buyer acquired the notes from the La Jolla office of Seattle-based Washington Capital Management Inc., which is the investment manager for the Southern California United Food & Commercial Workers Unions and Food Employees Joint Pension Trust Fund.

Holliday Fenoglio Fowler was the exclusive agent for Washington Capital Management in the sale. Dave Henderson and Catherine Quinn of PPM Finance worked closely with Holliday Fenoglio Fowler on the transaction.

The deal is unusual, Morey tells GlobeSt.com, in that so many properties are involved--all owned by separate, private investors based in Southern California. Ordinarily, he says, sales of notes usually involve loans on only one or two properties.

Morey says the Food Employees Joint Pension Trust Fund was interested in selling the notes in order to reinvest the proceeds into financing the construction of new grocery stores. One of the missions of the pension trust funds is to create more jobs for grocery industry workers.

The notes consist of nine individual mortgage loans on nine properties, totaling about 650,000 sf, with a leased aggregate of 99.5%. Each property is located in a highly desirable residential community that represents either a densely populated infill urban location or a rapidly growing suburban location, according to Morey.

The major grocery anchors include Ralphs, Vons, Albertsons and Stater Brothers, and the properties range from about one year to four years old. All of the loans were madebetween 1999 and 2002, ranging from $2 million to $19 million and terms of just over four years to more than 22 years.

The notes are secured by the following properties: Studio Plaza, 95,000 sf at Ventura Boulevard and Vineland Avenue in Studio City; Gateway at Burbank, 74,400 sf at Alameda Avenue and San Fernando Boulevard in Burbank; Lakewood Plaza, 62,500 sf at Del Amo and Pioneer boulevards in Lakewood; Gardena Valley Center, 125,500 sf at Redondo Beach Boulevard and Normandie Way in Gardena; Colton Stater Brothers Market, 35,200 at Cooley Drive and Barton Road in Colton; Loma Linda Plaza, 37,400sf at Barton and Mountain View Roads in Loma Linda; Tustin Albertson's, 45,000 sf at Newport Avenue and First Street in Orange; Rancho Bernardo Village, 66,700 sf at Rancho Bernardo and Pomerado Roads in Rancho Bernardo; Santee Village Square, 96,000 sf at Mission Gorge Road and Olive Lane in Santee.