Sabal Financial Acquires $158M CRE Loan Portfolio

Through the FDIC's Small Investor Program, Sabal Financial Group has acquired a $158 million portfolio of performing and non-performing commercial real estate loans from FirsTier Bank of Louisville, Colo.

September 15, 2011
By Nicholas Ziegler, News Editor

Through the FDIC’s Small Investor Program, Sabal Financial Group has acquired a $158 million portfolio of performing and non-performing commercial real estate loans from FirsTier Bank of Louisville, Colo. The acquisition represents the commercial component of a larger $297 million loan sale mandated by the FDIC after the seizure of FirsTier’s assets in January 2011.

“We are pleased to continue building on our existing relationship with the FDIC with the addition of this portfolio,” R. Patterson Jackson, CEO of Sabal, said. “This portfolio is a blend of commercial real estate loans and acquisition, development and construction assets that uniquely matches the broad expertise of Sabal in the management of small-balance distressed assets.”

The SIP is designed to increase investor access to smaller asset pools, widen participation in structured sales and maintain a level playing field for investors through a competitive bid process. Sabal will perform management, servicing and disposition services for the 116-loan pool amid the company’s ongoing expansion of its servicing portfolio, now totaling nearly $3 billion in assets. The acquired portfolio includes 116 loans and is secured by a heavy concentration of properties in Colorado, including retail, industrial, office, apartments and undeveloped land. The acquisition represents the increasing number of loan portfolios being sold by both failed banks and those banks seeking to shed assets as they work to improve their balance sheets.

The Small Investor Program has been busy of late, with the $139 million acquisition of a loan pool last month by Hudson Realty Capital L.L.C.