March 6, 2015

Banking: Distressed Assets

Playing in the Distressed Field

Mike Vogel | 9/30/2013

SABAL FINANCIAL:
Out-of-State Player

Since 2009, Newport Beach, Calif.-based Sabal Financial Group has become one of the biggest investors in Florida commercial real estate loans and property. The firm has nearly $6 billion in troubled and performing assets under management, as measured by unpaid principal balance, with more than $1 billion in Florida — "our biggest market," says Sabal founder and CEO Pat Jackson.

Sabal, which has offices in West Palm Beach and Orlando, buys from banks in bulk, picking up portfolios of property, commercial real estate loans and land acquisition, construction and development loans for its investors. It's also lending — bridge loans for commercial real estate — and it opened an office in Winter Springs in June to originate loans for home builders and land developers in Florida. It also acts as an adviser to real estate loan investors and to banks on mergers and acquisitions.

Jackson says banks should sell their distressed assets, rather than hold out for the last penny on them so they can focus on the business of making performing loans. Like BBX Capital's Alan Levan, he says firms such as his can be more flexible than a regulated bank in handling troubled assets, including taking ownership of a property and holding it to await a good return. "We have any number of creative solutions we can come up with," Jackson says. "A bank has only a limited number of solutions they can pursue."

Tags: Banking & Finance, The Money Issue

Digital Access

DIRECT DIGITAL ACCESS
Add digital to your current subscription, purchase a single ditgital issue, or start a new subscription to Florida Trend.

TABLE OF CONTENTS
An overview of the features and articles in this month's issue of Florida Trend.

ACCESS THIS ISSUE »

Florida Business News

Florida Trend Video Pick

Sarasota Ballet at All Children's Hospital
Sarasota Ballet at All Children's Hospital

Members of the Sarasota Ballet, the Gulf Coast of Florida’s only professional ballet company, hosted a special performance for patients at All Children’s Hospital.

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Do you think an MBA - or other advanced degree - is crucial for success in the business world?

  • Yes
  • Maybe, but only if you get that degree from a respected university
  • No

See Results

Ballot Box
Subscribe