Newport Beach-based Sabal Financial Group has acquired two loan portfolios totaling $527.2 million.
The financial services firm – which specializes in acquiring and evaluating portfolios of real estate loans, and has focused on commercial real estate loans and commercial and residential acquisition, development and construction loans – has been expanding its operations in response to a growing market for performing and non-performing loan portfolios.
“With deep expertise in both the real estate and banking sectors, our team is well equipped to handle the work-out of these assets,” said R. Patterson Jackson, CEO of Sabal Financial Group.
The first portfolio – comprised of both performing and non-performing loans secured by retail, office and industrial properties and land based assets in the states of Oregon and Idaho – purchased from the Bank of the Cascades in Bend, Ore. It is valued at $142.2 million and includes a total of 171 loans.
“We have participated in a number of deals similar to this one recently, and we continue to see an influx of them on the horizon,” Jackson said. “There is a strong desire among banks to clear out assets that are weighing them down.”
The sale of the second portfolio was mandated by the FDIC along with the assets of 42 failed banks throughout the U.S. as part of the ongoing Structured Sales Program. Consisting of 507 performing and non-performing loans, the $385 million portfolio primarily includes commercial and residential acquisition, development and construction loans.
“This is our third FDIC transaction, and it brings our total number of assets under management to approximately $3 billion,” Jackson said. “Sabal is uniquely qualified to oversee the management and work out of small balance distressed assets of this type with a model that is scalable to handle portfolios of this magnitude.”
The portfolio is secured by primarily undeveloped land properties throughout the country, but concentrated in the Southeast and Midwest United States. According to the Sabal Financial Group, the acquisition of this portfolio illustrates the brisk market for loan portfolios for sale, both by failed banks and financial institutions hoping to liquidate assets in order to balance their books.
Sabal Financial Group will provide loan servicing and asset management for both portfolios.
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