Regions Bank has entered into a definitive agreement to acquire Sabal Capital Partners LLC, a diversified financial services firm that leverages a technology-driven origination and servicing platform to facilitate lending in the small-balance commercial real estate market for clients nationwide.
Sabal is an originator 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. Regions plans to incorporate Sabal into its growing Real Estate Capital Markets division.
Based in Irvine, Calif,, Sabal Capital Partners is a vertically integrated platform that has originated nearly $6 billion in financing across the U.S. since inception and maintains a current servicing portfolio of nearly $5 billion. The company serves clients through its state-of-the-art SNAP platform, a proprietary tool developed by Sabal to optimize the lending and communications processes with clients and Sabal’s investor base.
“With the addition of Sabal Capital Partners, Regions will become even better positioned to further build on our client base and deliver an expanded range of agency and non-agency options for real estate lending,” says Joel Stephens, head of Capital Markets for Regions Bank. “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.”
“Our current affordable and large-balance Fannie Mae and Freddie Mac products, combined with Sabal’s small-balance agency capabilities, will allow Regions to offer real estate solutions across the full spectrum of agency offerings,” continues Stephens. “We look forward to working together to provide superior service to more real estate clients across the country.”
With its SNAP platform, Sabal Capital Partners delivers agency multifamily and commercial real estate loan services. Sabal 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 agency finance solutions include Fannie Mae Small Loans, Freddie Mac Optigo Small Balance Loans and Sabal’s newest offering, Freddie Mac Optigo Conventional Loans, a product Regions also recently added to its suite of services.
“For years, our work has been defined by a constant focus on innovation, and Sabal Capital Partners joining the forward-thinking team at Regions Bank is a natural fit as Sabal offers tailored lending solutions and reaches more clients together with Regions,” states Pat Jackson, CEO of Sabal Capital Partners. “Regions Bank has a demonstrated commitment to delivering competitive options for clients in the small- and middle-market commercial real estate space while maintaining a prudent approach to risk management.”
Regions will maintain Sabal’s flagship offices in Irvine and Pasadena, Calif., as well as New York City. When combined with Regions Real Estate Capital Markets’ existing production offices, the combined platform will have 20 production offices nationwide.
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, which will remain with the sellers, including Pat Jackson, and investment funds managed by Stone Point Capital LLC. Jackson and Mike Wilhelms, Sabal’s CFO, 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. Terms of Regions’ agreement to acquire Sabal Capital Partners were not disclosed.