Regions Bank announced it has entered into a definitive agreement to acquire Sabal Capital Partners LLC, a diversified financial services firm that leverages an innovative, technology-driven origination and servicing platform to facilitate lending in the small-balance commercial real estate market for clients nationwide.
Sabal is 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. Regions plans to incorporate Sabal into its growing real estate capital markets division.
Based in Irvine, California, 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 SNA platform, a proprietary tool developed by Sabal to optimize the lending and communications processes with clients and Sabal’s investor base.
The acquisition advances Regions Bank’s strategy of acquiring businesses that enable Regions to deepen relationships with current clients, while attracting new clients that are drawn to the services, capabilities, and technologies provided by companies such as Sabal Capital Partners, the companies said.
“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,” said 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. We look forward to working together to provide superior service to more real estate clients across the country.”
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.
“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,” said Pat Jackson, chief executive officer 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. By joining Regions, Sabal can make an even greater impact through combining technology-powered services with years of experience and strategic decision making to deliver unparalleled services for new and existing clients.”
Regions will maintain Sabal’s flagship offices in Irvine and Pasadena, California, 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.
The acquisition is expected to close in the fourth quarter of 2021. Terms were not disclosed.
Beekman Advisors represented Regions in connection with the Sabal Capital Partners transaction, and Davis Polk & Wardwell LLP served as Regions’ legal counsel. Wells Fargo Securities LLC served as financial advisor to Sabal Capital Partners, and Kramer Levin Naftalis & Frankel LLP served as Sabal’s legal counsel.
