Regions Bank will buy Sabal Capital Partners, a financial services firm, to boost its lending capacity in the small-balance commercial real estate market, according to a press release.
Sabal works as one of the biggest originators of Fannie Mae and Freddie Mac small-balance commercial real estate loans, the release stated. It’s also increasing its presence in non-agency commercial mortgage-backed securities loans.
Regions will incorporate Sabal into its Real Estate Capital Markets division, according to the release.
With the acquisition, Regions bolsters its strategy of buying businesses that allow the bank to strengthen relationships with clients it already has while also attracting new clients looking for the services, capabilities and tech from companies like Sabal, the release stated.
Sabal serves customers via its SNAP platform, a proprietary solution it created to optimize the lending and communications processes with clients and Sabal’s investor base, according to the release. It offers multifamily and commercial real estate loan services via the platform and uses real-time commercial property financing scenarios, seamless online loan applications and tech that lets clients track loan progress through deal closure.
Regions Bank Head of Capital Markets Joel Stephens said in the release that Sabal’s addition will help Regions “further build on our client base and deliver an expanded range of agency and non-agency options for real estate lending.”
“Sabal’s industry-leading technology platform and its leadership in the small-balance commercial real estate arena make the company a great match for Regions,” he said in the release. “Our current affordable and large-balance Fannie Mae and Freddie Mac products, combined with Sabal’s small-balance agency capabilities, will allow Regions to offer real estate solutions across the full spectrum of agency offerings.”
In related news, the complexity and uncertainty of real estate transactions has been a source of trouble in the past, as closings have hinged on several factors, including selling a buyer’s existing property and their ability to secure financing. HomeLight has created several products to eliminate contingencies.