Great holiday gift idea from Florida Trend!
Florida Trend
Get FREE Business News Updates


November 26, 2015

Banking: Distressed Assets

Playing in the Distressed Field

Mike Vogel | 9/30/2013

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

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

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


Florida Business News

Florida Trend Video Pick

Blue Origin launches, lands New Shepard rocket booster
Blue Origin launches, lands New Shepard rocket booster

Blue Origin completed a test flight this week that successfully launched a vehicle to space and landed the rocket booster. 

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Do you think playing daily fantasy sports (and betting) is gambling, or not?

  • Yes, it's gambling
  • No, it's a game of skill

See Results

Ballot Box