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Regions Bank Closes on Acquisition of Sabal Capital Partners

December 06, 2021, 07:14 AM
Filed Under: Banking News

Regions Bank completed its acquisition of Sabal Capital Partners, a diversified financial services firm that leverages an innovative, technology-driven origination and servicing platform to facilitate off-balance-sheet lending in the small balance commercial real estate market.

Sabal Capital Partners will be integrated into Regions’ Real Estate Capital Markets division. The acquisition enables Regions to expand its range of financial solutions for commercial real estate clients while creating additional revenue diversification for the bank through origination and servicing fees, further enhancing noninterest revenue. With the acquisition, the combined Regions Real Estate Capital Markets platform now consists of 20 offices.

“Our acquisition of Sabal Capital Partners further positions Regions’ Real Estate Capital Markets division to serve a growing client base through an expanded range of high-value, in-demand services,” said Joel Stephens, head of Capital Markets for Regions Bank. “By welcoming Sabal into the Regions family, we are further enhancing our agency multifamily and non-agency lending capabilities and accelerating our growth in off-balance-sheet small balance commercial real estate lending. With Sabal’s strong reputation, leading-edge technology platform, and exceptional team, this acquisition serves as an opportunity for Regions to meet additional needs for our clients while reaching new clients through the additional services delivered by Sabal Capital Partners.”

Sabal Capital Partners is a vertically integrated platform that has originated nearly $6 billion in financing 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. The company is a top 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.

“In joining Regions, Sabal’s commercial real estate lending platform will be able to reach a wider borrower audience, leveraging Regions’ legacy programs, reputation and market position,” said Jason Hull, head of Business Development with Sabal Capital Partners. “The two businesses ideally complement each other and, in becoming one, will meet the demand for comprehensive finance solutions within the real estate arena while driving meaningful efficiencies in execution.”

“It was always the vision at Sabal to become a market leader in commercial real estate lending,” added Pat Jackson, founder of Sabal Capital Partners. “With innovative technology and robust solutions and lending volume, our team was able to attract the attention of one of the country’s leading financial institutions. Allowing Sabal’s lending business to join with Regions Bank catapults it to its target position. I’m proud of the team we built and wish them well.”

Regions’ agreement to acquire Sabal Capital Partners was originally announced Oct. 4. The acquisition advances Regions Bank’s strategy of acquiring businesses that enable the bank to deepen relationships with existing clients while generating new business from additional clients seeking specialized financial services.

The acquisition of Sabal Capital Partners 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 Sabal CEO Pat Jackson, and investment funds managed by Stone Point Capital LLC. Jackson, Mike Wilhelms, chief financial officer, and Kevin McKenzie, chief investment officer, will remain with the investment management business while other members of Sabal’s leadership team join Regions. Terms of the acquisition were not disclosed.

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