Sabal Buys $121.5M in CRE Loans

Sabal Financial Group, L.P. has acquired a$121.5-million portfolio from a bank that includes 44 loans and properties in seven different states.

Sabal Financial Group, L.P. has acquired a $121.5-million portfolio from an unspecified regional bank based in the southeastern United States. The portfolio includes 44 loans, made up of a combination of nonperforming and performing loans tied to CRE properties and land in Texas, Florida, North Carolina, South Carolina, Georgia, Virginia and Missouri.

Sabal specializes in the acquisition and valuation of portfolios of real estate loans, with a concentration on CRE loans and commercial and residential acquisition, development and construction (ADC) loans. The company will provide loan servicing and asset management for the newly acquired portfolio.

Sabal CEO Pat Jackson told CPE that now is a good time to make this acquisition, because the company can be in it for the long run.

“As a non-regulated entity, we can apply our real estate expertise and apply a patient, longer-term approach to garner value from this portfolio,” he said.

Jackson also anticipates considerable future growth in buying distressed debt. In the last year, Sabal has doubled its employee base, in part to manage the flow of distressed loans the company is acquiring or expects to acquire.

“We can take on large portfolios,” said Jackson, adding that the company is also expanding beyond real estate investing and advisory services.

In June, Sabal established a builder -lending program to fill the void left by community banks exiting for-sale residential financing. Sabal Financial Group now offers non-recourse acquisition and ADC loans for homebuilders in various West Coast markets.