Regions Financial in Birmingham, Ala., has agreed to buy Sabal Capital Partners, a leading originator of small-balance commercial real estate loans.
The $156 billion-asset company said in a press release Monday that it expected to complete the acquisition in the fourth quarter. It did not disclose the price it will pay.
Sabal has originated nearly $6 billion in financing. It maintains a $5 billion servicing portfolio.
Regions said plans to incorporate Sabal into its real estate capital markets division.
“Regions will become even better positioned to further build on our client base and deliver an expanded range of agency and non-agency options for real estate lending,” Joel Stephens, Regions Bank’s head of capital markets, said in the release.
“Sabal’s industry-leading technology platform and its leadership in the small-balance commercial real estate arena make the company a great match,” Stephens added.
Regions said it will keep Sabal’s offices New York, as well as in Irvine and Pasadena, Calif.
Regions noted that it is not buying Sabal’s investment management business, which will remain with the sellers. Pat Jackson, Sabal’s CEO, and Mike Wilhelms, the company’s chief financial officer, will remain with the investment management business.
Regions acquired EnerBank USA, a home improvement point-of-sale lender, on Oct. 1.
Beekman Advisors and Davis Polk & Wardwell advised Regions on the Sabal deal. Wells Fargo Securities and Kramer Levin Naftalis & Frankel advised Sabal.