Amidst a robust pipeline of deals currently in the queue, the team at Sabal Investment Holdings announces four recently completed transactions. These include:

Boathouse, Washington D.C.: In conjunction with Up Campus Student Living, Palmor Capital, and BridgeInvest, Sabal completed the acquisition of Boathouse, a class A residential property in Washington, D.C.’s Foggy Bottom neighborhood. The ten-story property features 250 studio, one- and two-bedroom units and is a student housing community proximate to George Washington University.

Says Jon Mirkin, Managing Director, about the deal, “Our team’s ability to work with the existing ownership and lending group provided an opportunity to acquire this newly redeveloped asset at a significant discount to cost in a market with high barriers for new development. We see upside in maximizing the demonstrated demand for student housing in this location.”

114 Crosby Street, NYC: Sabal, in partnership with Maxim Capital Group and GDS Brightstar, closed a $50 million loan for 114 Crosby Street (a.k.a. 580 Broadway), a class A boutique office building with lower-level retail in SoHo. The property was recently renovated by Chelsfield Group and RAM Holdings and the financing will provide capital for further tenant fit-outs and lease-up efforts.

Says Tal Seder, Managing Director of Sabal, “We are believers in high-quality Manhattan office and retail assets and are pleased to be able to provide a flexible financing solution for what we believe is an exceptional asset. We continue to be active participants across the capital stack, especially during periods of dislocation.”

MorningStar at Arcadia, Phoenix, AZ: The joint venture of Sabal, 12 North Capital LLC, and affiliates of MorningStar Senior Living acquired MorningStar at Arcadia in the Biltmore area of Phoenix. The senior housing asset includes 78 assisted living and 30 memory care suites while benefitting from senior housing’s noteworthy, ongoing recovery post-Covid.

Says Charles Alexander, a director at Sabal, “Purchased below replacement cost, we believe this high-quality asset offers substantial upside potential with logical upgrades.”

The Press, West Palm Beach, FL: Sabal and Pebb Capital purchased The Press, a mixed-use asset in the enviable El Cid District of West Palm Beach from Tricera Capital in an off-market transaction. The duo will spend just under $80 million between acquisition, enhancements, and repositioning. The 11.6-acre property includes 256,653 square feet of office and retail space along with a 3.7-acre developable parcel.

Says Barton Vaughn, a director of investment management, of the deal, “This asset boasts an irreplaceable location in one of the highest-performing submarkets in the U.S. We were able to acquire it at an attractive basis and plan to invest significant capital to unlock the potential value.”

These four recent deals are representative of Sabal’s significant investment appetite, as well as the firm’s deep expertise in driving upside across commercial real estate assets via capital structure improvements, property enhancements, repositioning, market-rate lease-ups and/or workouts.

“We are in a market beset by elevated interest rates and lenders who continue to sit on the sidelines, thus solutions are needed,” says Seder. “We will continue to aggressively seek out opportunities in key markets across the U.S., where asset needs align with our established cross cycle expertise and capital deployment goals.”

Given the firm’s robust pipeline, Sabal sees a bright future in continuing to invest in this market cycle.

“Our deal pipeline is healthy and while we are looking at the potential of each asset in our queue individually during our strict due diligence process, we expect a number of deals to close before year-end,” adds Seder.

Pat Jackson is founder and chief investment officer of Sabal Investment Holdings, the real estate investment management firm serving institutional investors. Visit www.sabalinvestmentholdings.com.

There are no guarantees that the objectives of the investments referenced herein will be profitable.