Commercial Real Estate: Regions Buying California CRE Lender Sabal
Birmingham, Alabama’s Regions Financial is building out its capital markets business with a deal for California lender Sabal Capital Partners.
Sabal leverages an innovative, technology-driven origination and servicing platform to facilitate lending in the small-balance commercial real estate market for clients nationwide.
They are actually one of the top originators of Fannie Mae and Freddie Mac small-balance commercial real estate loans and has a growing presence in non-agency commercial mortgage-backed securities loan origination.
Commercial Real Estate: Sabal’s Cutting-Edge Technology
The $156 billion-asset bank will acquire Sabal in a deal expected to close in the fourth quarter.
Based in Irvine, California, Sabal has originated $6 billion in loans since it was founded in 2009 and currently maintains a servicing portfolio of $5 billion.
Regions highlighted a proprietary tool, which Sabal calls its SNAP platform, as a selling point in the deal. That tool relies on capabilities like real-time commercial property financing scenarios and online loan applications to improve lending and communications processes with clients and investors.
With its SNAP platform, Sabal Capital Partners has established a competitive edge in delivering agency multifamily and commercial real estate loan services.
Sabal also leverages tools such as real-time commercial property financing scenarios, seamless online loan applications, and technology enabling clients to track loan progress through deal closure.
“Sabal’s industry-leading technology platform and its leadership in the small-balance commercial real estate arena make the company a great match for Regions,” Joel Stephens, Regions’ head of capital markets, said in a press release.
Regions: The Dealmaker
The deal for Sabal follows the recent closing of its deal for EnerBank USA, an industrial loan company specializing in home improvement lending, which it first announced in June.
Last year, Regions also bought Ascentium Capital, an equipment finance firm based in Texas.
Regions plans to maintain Sabal’s flagship offices in Irvine, California, and Pasadena, California, as well as its New York City office.
Regions’ agreement to acquire Sabal Capital Partners, LLC is specific to the lending and servicing segments of Sabal’s business and does not include Sabal’s investment management business.
Sabal’s Investment Management Business Remains
The investment management business will continue to remain with the sellers, including Pat Jackson, and investment funds managed by Stone Point Capital LLC.
Jackson and Mike Wilhelms, Sabal’s chief financial officer, will remain with the investment management business while other members of Sabal’s leadership team will join Regions.
Regions’ acquisition of Sabal Capital Partners, LLC is expected to close in the fourth quarter of 2021, subject to obtaining necessary consents from certain governmental agencies and government-sponsored enterprises and satisfaction of customary closing conditions.
Real Estate Matrix is one of the Southeast’s premier commercial valuation firms and has participated in the valuation of billions of dollars in real property assets.
We would appreciate the opportunity to add you to our very long list of pleased clients. You can give us a call or click here to fill out our Free Quote Appraisal Form.
Share
Read More of Our Blog
