Sabal Financial Purchases $212M Loan Portfolio

August 17, 2011
By Barbra Murray, Contributing Editor

Sabal Financial Group L.P. has snapped up a $212 million portfolio of performing and non-performing loans from a leading bank based in the Midwest. The pool of loans, the cost of which the diversified financial services management firm is not publicly divulging, involves real estate located primarily in Florida, Illinois and Wisconsin.

“The portfolio consists mainly of a combination of income producing commercial real estate assets and land and finished lots,” R. Patterson (“Pat”) Jackson, CEO of Sabal, told Commercial Property Executive. The commercial real estate segment includes retail, office and industrial properties. Residential real estate comprises a small percentage of the portfolio.

Sabal, formerly Milestone Asset Resolution Co. L.L.C., is actively capitalizing on a trend in the banking world. “Banks are continuing to de-leverage from non-performing assets,” Jackson noted. The firm, which specializes in the acquisition and valuation of real estate loan portfolios, anticipates that banks’ needs for the services it provides are on the upswing and will continue along that path for the foreseeable future.

In response to the current state of the banking industry, Sabal has gone into growth mode. The firm is ramping up its operating platform, and it plans to launch a national lending platform that would supply debt capital to borrowers seeking financing for commercial real estate and acquisition, development and construction projects. “The banking sector is largely sitting on the sidelines and we have a specific expertise to provide credit to well qualified borrowers,” he said.

Sabal is well positioned to support its expansion plans as a result of Oaktree Investment Holdings L.P.’s investment in the firm via the acquisition of a non-controlling equity position in June.

Additionally, Sabal has hired an industry veteran, Kevin McKenzie, as portfolio manager to help facilitate the firm’s growth strategy. McKenzie boasts a 25-year history in the real estate and finance businesses, having held the positions of developer, principal investor, advisor and investment banker.