By Tal Seder

In a show of substantial commercial real estate investment activity, Sabal Investment Holdings (Sabal) has announced a series of deal closings. Set across various U.S. markets and real estate asset classes, the transactions are the most recent group of closings resulting from Sabal’s robust deal pipeline and, together, encompass $195.1 million in transaction volume.

Each of the five deals represents the acquisition of a non-performing commercial real estate loan, underscoring the distress U.S. real estate faces today due to elevated interest rates and continuing financial challenges.

“As a company founded in the height of the Global Financial Crisis, we are well suited to investing in troubled real estate,” says Sabal founder and CEO Pat Jackson. “It’s in our roots and these transactions reflect our appetite for these opportunities.”

Sabal’s five recent deals include:

• Sabal formed a joint venture with sponsor Dornin Investment Group, a southern California based investment firm specializing in distressed, opportunistic, value-add and core plus real estate investment, for the acquisition of a non-performing loan collateralized by the Hawthorne Portfolio. The portfolio is comprised of three industrial/flex properties totaling approximately 118,000 square feet as well as a vacant 39,424-square-foot developable land parcel, located in Los Angeles’ Gardena/Hawthorne submarket.

• Sabal formed another joint venture with Dornin Investment Group for the acquisition of a non-performing loan collateralized by a luxury, well-located senior housing community in Aventura, Florida. The newly built mixed-use asset is a 163-unit facility spanning independent living, assisted living, and memory care offerings, in addition to approximately 29,000 square feet of ground floor retail.

• Sabal acquired a non-performing senior loan, again in partnership with Dornin Investment Group. The loan is collateralized by a Class A apartment community located in the Capitol Hill submarket of Seattle. The seven-story multifamily asset consists of 65 traditional apartments, 30 short-term rental units and 4,900 square feet of ground-level retail space which is fully leased.

• Sabal formed a joint venture with Torose Equities, a Miami-based investment firm specializing in distressed, opportunistic, value-add and core plus real estate investments across office, retail and mixed-use sectors for the acquisition of a non-performing senior and mezzanine loan. The loan is collateralized by 3480 Main Highway, a 100 percent leased class A office building totaling 55,122 square feet. The property is located in Miami’s Coconut Grove submarket.

• Sabal’s final deal is a joint venture with repeat sponsor 12 North Capital, an investment management and advisory firm, to acquire a senior loan collateralized by three memory care seniors housing facilities. The facilities include the 60-unit Poet’s Walk community in Warrenton, Virginia, the 60-unit Poet’s Walk community in Leesburg, Virginia, and the 60-unit Poet’s Walk community in San Antonio, Texas.

Sabal’s investment pipeline remains active; expect additional deals to close in 2025. Keep watch for company and deal news at Sabal.com.

About the Author

Tal Seder is Managing Director with Sabal Investment Holdings, the real estate investment management firm serving institutional investors. Contact Tal at Tal.Seder@sabal.com; visit www.sabal.com.

There are no guarantees that the objectives of the investments referenced herein will be profitable. Past performance is not indicative of future results.