A bulk of 80 loans funding affordable rental and labor properties, highlighting the current demand in the sector amid the housing affordability crisis
IRVINE, Calif., April 05, 2022 (GLOBE NEWSWIRE) — Sabal Capital Partners, LLC, a wholly owned subsidiary of Regions Bank and a nationwide commercial real estate lender, today announced the successful closing of approximately $264 million in multifamily real estate loans during the period January 1 through March 31. of this year. Totaling 80 loans for 80 properties in 21 states coast-to-coast, the transactions include both acquisition and refinance loans, and represent transactions from just three of the many loan programs the company offers. The bulk of multi-family loans were funded through low-balance Fannie Mae and Freddie Mac agency programs serving affordable rental properties and labor, reflecting strong demand in the sector today in the amid an ongoing housing affordability crisis in the United States.
“Sabal continues to meet the needs of borrowers in the affordable housing and workforce sector and our first quarter pipeline reflects this,” said Ed Hussey, head of agency lending for Sabal Capital Partners. . “These loans are important because they ensure that rental accommodation across the country remains available for individuals and families who cannot afford market-priced apartments close to where they work.”
Current research indicates that ten million low-income renter households regularly spend more than half, when ideally they should not spend more than 30%, of their income on rent. Additionally, the federal minimum wage of $7.25 an hour is well below national wages for two-bedroom and one-bedroom units. While 30 states, the District of Columbia, and many counties and municipalities now have minimum wages higher than the federal minimum wage, the average minimum-wage worker still has to work nearly 97 hours a week (nearly two full-time jobs) to earn minimum wage. -house rental rooms at fair market rates.I
27 of the 80 total loans were made through Fannie Mae’s Small Multi-Family Loan Program, which provides loans of up to $6 million for smaller rental properties that tend to be more affordable, are concentrated in urban areas close to transport and employment, and which provide housing for working-class families. 47 of the completed loans were funded through Freddie Mac’s Optigo® Small Balance Loan Program, which offers loans from $1 million to $7.5 million nationwide for small apartments of 5 to 50 units and serves the national workforce.
The remaining six loans were closed through Sabal’s CMBS Conduit Lending Program, which provides non-recourse loans of up to $50 million for basic commercial real estate properties, including multi-family communities, located nationwide. All of the CMBS loans financed multi-family properties except for one which financed a self-storage asset. Of the 80 operations, 18 financed acquisitions and 62 refinancing loans. The 80 loans do not include transaction activity for the remaining combined portfolio of loan programs from Sabal Capital Partners and Regions Bank. The company’s comprehensive offering of acquisition, refinancing and construction solutions includes Fannie Mae DUS, Fannie Mae Affordable, Fannie Mae Small Loans, Freddie Mac Affordable, Freddie Mac Optigo® Small Balance Loans, Freddie Mac Optigo® Conventional, USDA, FHA/HUD (both MAP and LEAN), Structured Adjustable Rate Mortgage Programs and CMBS Conduit.
The first quarter 2022 transaction closings follow recent news from the Acquisition by Regions Bank of Sabal Capital Partners announced on December 2, 2021.
All of Sabal’s lending programs are accessible through SNAP, the proprietary online lending platform that enables unparalleled efficiency and convenience for brokers and borrowers throughout the lending process, from application to service. To visit Sabal’s website.
About Sabal Capital Partners
Sabal Capital Partners, LLC, a wholly owned subsidiary of Regions Bank, is a national commercial real estate lender that has raised nearly $6 billion in financing and manages a $5 billion service portfolio. Sabal Capital Partners enables brokers and borrowers to get a head start with comprehensive debt solutions encompassing both agency and non-agency options. The lender is recognized for advancing the industry with SNAP™, an innovative proprietary technology platform that optimizes origination and service and enhances the customer experience. Sabal Capital Partners is a Nationally Rated Commercial Primary Servicer and Commercial Special Servicer by Morningstar with a CS2 rating, a Commercial Mortgage Loan Special Servicer rated by S&P Global with a Medium rating, and a CMBS Primary Servicer rated by Fitch with a a CPS2 classification and CMBS Special Servicer with a CSS3+ classification. For more details, visit Sabal’s website.
I National Low Income Housing Coalition, Out of Reach 2021: The High Cost of Housing, https://nlihc.org/sites/default/files/oor/2021/OOR_2021_Mini-Book.pdf
CONTACT: Contact: Julie Fornaro IDEA HALL 562-587-3957 [email protected]