SOURCE: Sabal Financial Group

May 20, 2013 13:13 ET

Sabal Financial Group Furthers Expansion of Home Builder Lending in Northern California, Closes a Trio of Residential Acquisition, Development and Construction Loans

NEWPORT BEACH, CA--(Marketwired - May 20, 2013) - Sabal Financial Group, L.P., a diversified financial services firm specializing in real estate, lending and banking, has furthered the expansion of its Home Builder Lending business in Northern California. Demonstrating its growth in the region, the firm announced the closing of three Acquisition, Development and Construction (ADC) loans for three for-sale residential projects. Financed through Sabal's Home Builder Lending division, the $38 million in loans were issued to Premier United Communities, Pacific Housing and Lafferty Communities.

"The housing inventory on the West Coast contracted significantly over the past few years and, as a result, new home construction is rebounding," said Tom Farrell, director of Sabal's Home Builder Lending division. "Our Home Builder Lending business continues to expand in Northern California where the demand for new homes is strong and builders are looking for alternative finance sources to get their projects built."

The first of the three transactions completed provided Lafferty Communities, a privately-held home builder based out of San Ramon, with a $24 million construction loan for a single-family new home community in Livermore. The community, also known as The Grove, consists of three-to-four bedroom homes with flexible floor plans providing residents with convenient access to employment, transportation, retail and reputable schools. "The demand for single family homes continues to grow in the Bay Area. Sabal was instrumental in helping us meet this demand by financing our new community, The Grove, in Livermore, California," said Rick Lafferty, president and chief executive officer of Lafferty Communities.

In the second transaction, Sabal provided Pacific Housing, a non-profit public benefit corporation located in Sacramento, CA, with a $9.9 million loan for the acquisition of a 1.2 acre piece of land in Sacramento, CA, entitled for the development of 34 detached townhomes. Each home will range from 1,251 to 1,826 square feet with prices from $330,000 to $400,000."

"As a non-profit, we require a finance partner who understands our unique challenges," said Mark Wiese, President of Pacific Housing. "Sabal provided a solution that most lenders could not."

In the third transaction, Sabal provided a $4.8 million loan to Premier United Communities, a residential development company based in Sacramento, for the construction of ten single-family homes in Granite Bay ranging in size, from 2,792 to 3,742 square feet and priced from $585,000 to $710,000. "As a non-regulated lender, Sabal provided expedited funding and a better solution than what we would have found with a bank," said Dave Ragland, Senior Project Manager of Granite Bay Development.

Sabal is comprised of an experienced team with extensive background in both home building and lending, focused on delivering financial decisions based on sound real estate underwriting.

About Sabal Financial Group

Sabal Financial Group, L.P. is an international diversified financial services firm specializing in real estate, banking and lending. The firm's flagship business has established a strong foothold in the distressed debt arena, bringing nearly $6 billion in real estate and land assets under management since the firm's inception in 2009. Sabal operates a number of complementary businesses including: Sabal Commercial Lending, a non-regulated debt provider offering acquisition, development and construction loans to established residential builders and commercial bridge loans to reputable real estate investors and owners; Sabal Commercial Advisors, a national transaction support services provider to CMBS investors and originators; the Sabal Bank Credit Advisory Practice, an advisor and M&A specialist serving commercial and investment banks with unbiased third-party credit portfolio risk and capital performance assessments; and Sabal Fund Surveillance and Analytics, a provider of expert oversight, reporting and disbursement controls on behalf of equity providers in real estate and non-real estate joint ventures, and controlled and non-controlled investment platforms.

A privately held company, Sabal Financial Group is headquartered in Newport Beach, CA. Visit the company online at www.sabalfin.com.

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