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Sabal Investment Holdings and KRE Capital Complete $10.2 Million Preferred Equity Investment to Finance Acquisition, Development of Nearly 400 Residential Home Lots

January 29, 2024

Sabal Investment Holdings and KRE Capital together recently provided a $10.2 million preferred equity investment to a nationally recognized residential developer to finance the acquisition and development of 377 residential home lots.

“We continue to see opportunity in the for sale, new build residential sector,” says Tal Seder, managing director. “Sabal participated in similar investment opportunities during the Global Financial Crisis and this investment taps into the company’s institutional knowledge and historical leadership in dislocation investment opportunities. This is also kicking off a number of deals we plan to close in Q1.”

The lots in question are currently under contract to be sold to NVR, Inc., the Reston, Virginia-based homebuilding and mortgage banking business that is also parent company to Ryan Homes. Ryan Homes will build for-sale homes on the lots, which are part of the Amah Lee development located in Hampton, Georgia, just south of metro Atlanta.

“This region is expanding in both jobs and population yet, at the same time, for-sale home inventory is failing to keep up with demand,” adds Seder. “With a forward purchase contract in place with a reputable builder, this is an all-around attractive investment for us.”

Sabal Investment Holdings provides investment management services to institutional investors, with a focus on debt and equity investments in commercial and multifamily real estate. Learn more about Sabal Investment Holdings here.