California-based Sabal Financial Group is selling a $541m real estate portfolio that includes $248m of loans and $293m worth of assets.
There are 317 performing, sub-performing and non-performing loans (NPL) in the portfolio, about $157m (227) of which are non-performing. The properties in the portfolio include office, retail, multifamily, industrial and hotel, in addition to land. HFF has been hired to execute the sale.
“We expect multiple buyers,” Brock Cannon, a managing director at HFF, told Real Estate Capital. “Some buyers may buy the performing loans and hold them for yields. Others may come in and work through the NPLs, restructure them.”
The non-performing loans have a weighted average coupon of seven percent, according to an offering document. Florida has the greatest share of NPLs, with about 21 percent, followed by Alabama (15%), New York (10%) and Wisconsin (9%).
Florida also has the most performing and sub-performing loans, about 28 percent, followed by Idaho (17 percent), Georgia (12 percent) and North Carolina (10 percent).
“This pooled portfolio provides an opportunity for investors looking for predictable cash yield from high quality investment property and loans in addition to achievable value add strategies,” Cannon added.
Sabal’s principal investments specialize in distressed debt and has invested nearly $8.2bn in real estate assets since 2009.
The initial and final bids are due on 10 Sept. and 29 Sept., respectively. Canon said it was too early to comment on pricing.