SOURCE: Sabal Financial

June 20, 2012 12:00 ET

Sabal Financial Group Announces New Builder Lending Program

Sabal to Provide Non-Recourse Construction and Acquisition and Development Loans to California Homebuilders

NEWPORT BEACH, CA--(Marketwire - Jun 20, 2012) - Sabal Financial Group, L.P., a diversified financial services firm, announces the launch of a new builder lending program in a strategic move to offer non-recourse construction and acquisition and development (A&D) loans to established homebuilders in California. Sabal is filling a void in the lending market left by the departure of traditional capital sources, namely commercial banks, and comes at a time when homebuilders are actively pursuing quality development opportunities.

As a non-regulated lender, Sabal is unique in its ability to provide non-recourse construction and A&D loans secured with completion-only guarantees. Non-recourse loans are highly appealing to developers, especially given the difficulty over the past several years in accessing construction loans.

Sabal will focus on serving experienced middle-market home builders in California markets. The group will target entry-level to luxury residential projects, including detached single-family homes, townhomes and condominiums.

"Experienced homebuilders with sound projects need a reliable construction lender that is responsive and knows how to deliver creative loan structures," said Pat Jackson, CEO of Sabal Financial Group. "High quality residential development opportunities are being competitively bid by homebuilders, and certainty of execution is critical."

Sabal expects to lend in the $3 million to $35 million range, providing loans of up to 80% of project cost or 75% of value, flexible pricing and terms of 12 to 36 months for qualifying projects.

"Sabal's builder lending program will help provide construction and A&D loans for mid-sized residential projects in California, and in doing so will contribute to the ongoing economic recovery in the new home market," said Jackson.

Sabal recently hired Tom Farrell to lead the division. Farrell previously served as Bank of America's top executive in their homebuilder division and has a 26-year background in construction lending. Sabal also has several former homebuilders on its staff, a key component in the group's ability to underwrite and structure residential construction financing.

"Sabal's builder lending program is well positioned to create funding solutions for homebuilders with projects that exhibit sound feasibility, quality design and have a defined competitive market edge," said Farrell.

About Sabal Financial Group
Sabal Financial Group, L.P. is a nationwide diversified financial services firm specializing in the acquisition, valuation, management and servicing of commercial real estate (CRE) and acquisition, development and construction (ADC) loans and mortgages. Sabal Financial Group provides credit advisory services and loan portfolio management and performance assessments for investment and commercial banks, including capital assessment based upon portfolio and ALLL analysis. Sabal also provides construction and A&D loans to established middle-market residential builders in California. Sabal Financial Group is a privately held company that has $3 billion under management and is led by a senior management team with extensive banking and real estate expertise in both the governmental and private business sectors.

Sabal Financial Group is headquartered in Newport Beach, CA, with offices in Pasadena, CA, Miami, Washington, DC, Greenville, SC and New York City. www.sabalfin.com

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