SOURCE: Sabal Financial Group

Sabal Financial Group

August 21, 2012 12:00 ET

Sabal Financial Group Closes on For-Sale Residential Construction Loan Under New Builder Lending Program

$4 Million Loan Granted for the Development of 12 Detached Residences in Torrance, CA

NEWPORT BEACH, CA--(Marketwire - Aug 21, 2012) - Sabal Financial Group, L.P. has announced the closing of a $4 million construction loan for 12 detached single-family residences through the company's recently launched builder lending program. The loan borrowers -- Bali Construction, Wes Keusder of Keusder Homes and Bart Hornstein of Core Real Estate Services -- will develop the project, scheduled to be completed in 2013.

"This transaction represents Sabal's commitment to provide construction lending to established middle-market homebuilders," said Pat Jackson, CEO of Sabal Financial Group. "Sabal has identified a great opportunity to meet the needs of experienced builders who are actively pursuing quality development opportunities." 

The project, located in Torrance, CA, meets Sabal's goal of financing well-located infill projects that exhibit competitive market advantages. The proposed development is within walking distance of Del Amo Fashion Center and Torrance Civic Center, is close to several South Bay beaches and is near major employment centers. Convenient access to the site is provided via the 110 and 405 Freeways.

"This is the type of project that Sabal is looking to finance," said Tom Farrell, who leads Sabal's builder lending program, which recently launched in June 2012. "It exhibits sound feasibility, quality design and the infill nature of the development gives it a defined competitive market edge." Farrell, a 26-year industry veteran, previously served as the top executive in Bank of America's homebuilder division.

"With employment centers, strong regional amenities and the Pacific coastline nearby, the demand for quality housing in this region is strong and Sabal's financing is helping us meet the demand," added Bart Hornstein.

Sabal provides construction loans for entry-level to luxury residential projects, including detached single-family homes, townhomes and condominiums.

"At the heart, we are real estate investors," said Pat Jackson. "Sabal's focus on the fundamentals of the project over the financials of the borrower means creativity and flexibility in funding, in many cases allowing Sabal to offer 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 lends 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 platform is providing financing to a currently underserved market of homebuilders," said Wes Keusder who was recently selected for induction into the California Building Industry Association (CBIA) Hall of Fame at PCBC 2012. "We are happy to be among the first of their clients as they launch this valuable financing source to the industry."

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 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, Washington and Oregon. Sabal Financial Group is a privately held company that has approximately $4 billion under management and is led by a senior management team with extensive banking and real estate expertise in both the governmental and private sector. 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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