Sabal Financial Introduces Expanded CMBS Business
- May 03, 2013
Sabal Financial Group L.P. has kicked off Sabal Commercial Advisors, an expansion of the financial services firm’s Commercial Mortgage Backed Securities business.
“Sabal Commercial Advisors is a natural extension of Sabal’s existing business, and another avenue for us to leverage our deep real estate expertise in the marketplace,” R. Patterson Jackson, CEO of Sabal Financial, told Commercial Property Executive.
Relying on Sabal Financial’s well-established CMBS platform, Sabal Commercial will serve as a one-stop-shopping source for transaction support services to CMBS investors and CMBS loan originators. The services fall under two core categories, one of which is Loan Origination. Those services will take the form of due diligence and underwriting of CMBS and non-CMBS commercial real estate loans for CMBS conduits, lenders and mezzanine lenders. The second grouping is Loan Re-Underwriting, which will offer due diligence and re-underwriting for investor client purchases of commercial real estate loan portfolios, or a tranche in a loan pool, to CMBS bond investors, B-piece buyers, hedge funds, pension funds and sovereign wealth funds.
With the establishment of any new business, timing is everything, and Sabal Financial believes the current climate is just right for the debut of Sabal Commercial. “We are seeing substantial growth in the CMBS marketplace right now and expect it to possibly even triple in volume this year from what occurred in 2012,” Jackson said. “This is a perfect time for us to focus our expert team in CMBS to meet the needs of this expanding market.”
In April, the CMBS delinquency rate experienced a 47 basis-point drop to 9.03 percent, its lowest level in more than two years, according to a report by Trepp L.L.C., an analytics provider to the CMBS, commercial real estate and banking markets. Among the major property types, the falloff was across the board.
“The CMBS market is rebounding,” Jackson added. “The recovery is certainly not to the levels it was at the height of the market in 2006 and 2007, however it’s moving in the right direction and there is a lot of opportunity.”