Commercial real estate adviser Sabal Investment Advisors LLC has closed its first fund at about $200 million, beating its $150 million target. The limited partners of the SIA Debt Opportunities Fund included the University of Michigan, AZ Public Safety Personnel Retirement System pension and an unnamed Midwest and New York family office. Artist Capital LLC was the placement agent.
Sabal Investment Advisors, LLC (“SIA”) is pleased to announce the final close of its first private capital vehicle, the SIA Debt Opportunities Fund (the “Fund”), which exceeded the initial target of $150 mm with total commitments of approximately $200 mm. Led by Chief Executive Officer Pat Jackson and the SIA senior team, the Fund will benefit from the extensive commercial real estate investment and operating experience of the senior management team as well as its affiliates’ vertically integrated, national commercial real estate platform, which operates independent of the Fund.
The Fund is a medium duration private capital vehicle with a 2-year investment period (which began after the first close in October 2016). A core component of the Fund will be to invest in subordinated tranches of securitizations created by the Freddie Mac Small Balance Lending (“SBL”) program where the underlying properties must adhere to stringent underwriting standards focused exclusively on multifamily properties that are fully stabilized, senior secured, low LTV, current cash flowing loans between $1 mm and $7.5 mm.
Sabal continuously seeks to reinvent traditional commercial real estate processes by building and refining innovative technologies that can be applied across the real estate cycle. As such, we believe the Fund represents the next phase of Sabal’s evolution from a distressed buyer to next-generation lender. In order to help manage the granularity and data intensive nature of the small balance commercial lending landscape, the Fund is a beneficiary of its affiliates’ proprietary lending technology called SNAPTM, which was designed for brokers and facilitates a predictable and transparent alternative to traditional lending.
SIA retained Artist Capital LLC, a boutique merchant bank and placement agent to pilot fundraising efforts. The Fund secured commitments from a number of premier institutional investors, including the University of Michigan’s endowment, AZ Public Safety Personnel Retirement System pension, a major Midwest hospital plan, a Japanese insurance company, a RE specialist advisor who brought a large southwest public pension plan, as well as a multi-employer ERISA plan, a Midwest family office and a NY based family office and advisory firm.
“We are extremely excited that we finalized our first institutional private capital raise with such a dynamic, forward thinking list of partners,” said Pat Jackson, Senior Portfolio Manager and CEO of SIA.”
“Pat has built a tremendous platform focused on identifying unique deal flow in the commercial real estate sector that few can replicate,” outlines Evan Kerr, Managing Director of Artist Capital LLC who worked extensively with Pat and the SIA team on the capital raise. “We believe this is a momentous stepping stone for what SIA can build over time.”
“Our strategy of identifying unique investment entrepreneurs has been fully realized through our relationship with Pat and his team,” said Jonathan Sands, CEO and Founder of Artist Capital LLC. “Just building on his investment and operating history will provide tremendous opportunities and we are excited to see what Pat can build in the future.”
Sabal Investment Advisors
Sabal Investment Advisors, LLC (“SIA”) is a registered investment advisory firm located in Newport Beach, California led by Pat Jackson. SIA leverages the extensive commercial real estate backgrounds of the senior management team as well as affiliated businesses which allows the Fund to benefit from a fully integrated commercial real estate platform providing the ability to originate, underwrite, service, manage and invest across real estate cycles. The firm finalized capital raising for its flagship private capital fund in early 2017 with total commitments of approximately $200 million.
Artist Capital LLC (http://www.artistcapital.com/)
Founded by Jonathan Sands in 2007, Artist Capital partners with the world’s most thoughtful and innovative investors allowing them to successfully execute on their vision, size up their best ideas, and bring their brands to market. By connecting clients with the optimal strategic capital partners, Artist positions them for accelerated success. Artist has a proven track record of providing dynamic, bespoke solutions across dozens of clients and hundreds of investors. Since inception, Artist and its principals have orchestrated over $4 billion of investments for their clients.