Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 09 February 2015

Sabal Financial Aims Big for Small-Balance Lending

Sabal Financial Group, which started actively writing small-balance commercial mortgages only last June, so far has funded roughly $500 million of them. And if market conditions remain favorable, the company could very well originate $1 billion this year. It plans to sell some of what it originates to banks, while securitizing its long-term loans.

Commercial Real Estate Direct Staff Report

Sabal Financial Group, which started actively writing small-balance commercial mortgages only last June, so far has funded roughly $500 million of them.

And if market conditions remain favorable, the company could very well originate $1 billion this year.

The Newport Beach, Calif., company, part owned by Oaktree Capital Management, funds its small-balance originations, those with balances of between $1 million and $10 million, using a warehouse credit line. It also is one of six originators under Freddie Mac's small-balance lending effort, under which it pursues loans of $1 million to $5 million.

It will write loans with terms of three, five, seven and 10 years, and, in order to leverage its balance sheet, it could sell or securitize some of them.

Community and regional banks, for instance, could be targets for its shorter-duration loans, while it could securitize its long-term paper. It's already developed relationships with hundreds of community and regional banks as a result of its loan-acquisition business.

And it's said to be in talks with Nomura Securities and Wells Fargo Securities about leading a deal involving less than $200 million of its long-term loans. Such a deal...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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