Expanding Sabal Financial Group Acquires $212 Million Loan Portfolio

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A California-based financial services management firm has acquired more than 100 performing and non-performing loans secured primarily by retail, office and industrial properties. Sabal Financial Group, formerly Milestone Asset Resolution Co., values the portfolio it acquired at $212 million.

Company executives decline to disclose the name of the seller, which is described as a major Midwest retail bank. The portfolio is heavily concentrated in Wisconsin, Illinois and Florida, and includes a few residential real estate loans.

There is an increasing number of loan portfolios that banks are looking to offload in an effort to correct their balance sheets, according to R. Patterson “Pat” Jackson, Sabal’s CEO.

“We are currently responding to an influx of asset valuation assignments and loan portfolio acquisition opportunities,” says Patterson. “This particular acquisition extends our presence in both the Midwest and Southeastern United States.”

Sabal is responsible for loan servicing and asset management of the portfolio. The company specializes in the acquisition and valuation of portfolios of real estate loans, with a concentration on commercial real estate loans and commercial and residential acquisition, development and construction loans.

Sabal has been growing to match the pace of its increasing workload. The firm recently expanded its headquarters in Newport Beach, Calif., and has hired a commercial real estate veteran to oversee portfolio management.

Kevin McKenzie, the new portfolio manager, oversees the firm’s rapidly growing commercial real estate portfolio of assets under management and is integral in growing the company’s acquisition and valuation services platform. McKenzie brings more than 25 years of experience as a developer, principal investor, advisor, investment banker and architect, and has worked on more than $3.5 billion of property investments in his career.

“It is important that we have a strong team in place to ensure our success,” says Jackson. “Kevin McKenzie’s real estate experience is proven and valuable as our company continues to expand at a progressive rate.”

Prior to his position with Sabal, McKenzie co-founded Palisades Equity Partners, an Orange County, Calif.-based opportunistic, value-based real estate investment firm. He also served as president of Parker Properties, a Southern California-based developer, where he developed more than 750,000 sq. ft. of Class-A office buildings. He also held senior positions at Buchanan Street Partners, AEW Capital Management, Goldman Sachs and JER Partners.

Sabal currently manages a portfolio of assets in excess of $2 billion. The company plans to grow its bank consulting business and its assets under management, developing a nationwide lending operation to provide debt capital for commercial real estate projects.

In addition to its headquarters, Sabal has offices in Pasadena, Calif.; Chicago; Miami; Washington, D.C.; Greenville, S.C.; and New York City.


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