Sachem Capital Corp. Completes 20% Investment in Shem Creek Capital LLC to Further Diversify Business Model
11 Septiembre 2024 - 6:00AM
Sachem Capital Corp. (NYSE American: SACH) announced today it has
acquired a 20% membership interest for $5 million in Shem Creek
Capital, LLC, the third-party management company of the Shem Creek
(“Shem”) private credit funds. Sachem also has the option to
acquire up to an additional 10% membership interest in Shem, by
early 2027, at a set valuation. Shem, established in 2008, is a
commercial real estate finance company with a focus on providing
debt capital solutions to local and regional commercial real estate
owners in the Northeastern United States. Shem invests primarily in
first mortgage loans secured by commercial real estate assets,
notably value-add multifamily, workforce housing, and industrial
properties.
John Villano, CEO of Sachem Capital Corp.,
commented: “Over the past four years, Sachem has invested
approximately $47 million with Shem, which is currently generating
attractive double-digit returns, with no losses to date—a
remarkable achievement given the challenging macroeconomic
environment during that period. Our long-standing relationship with
Shem and its management, the diversification this investment brings
to our business model, the expandable nature of the Shem platform,
and our expansion into asset management, gives us confidence that
this is another value-added opportunity for our shareholders.”
Scott Goldberg, President of Shem Creek Capital,
LLC said: “We are very pleased to have closed on this transaction
with Sachem Capital and look forward to building upon what has
already been a strategic and successful relationship between our
two firms. Going forward we believe the synergies between us will
foster significant growth for the platform and asset base,
ultimately driving strong risk-adjusted returns to our respective
investors.”
About Sachem Capital Corp.
Sachem Capital Corp. is a mortgage REIT that
specializes in originating, underwriting, funding, servicing, and
managing a portfolio of loans secured by first mortgages on real
property. It offers short-term (i.e., three years or less) secured,
nonbanking loans to real estate investors to fund their
acquisition, renovation, development, rehabilitation, or
improvement of properties. The Company’s primary underwriting
criteria is a conservative loan to value ratio. The properties
securing the loans are generally classified as residential or
commercial real estate and, typically, are held for resale or
investment. Each loan is secured by a first mortgage lien on real
estate and is personally guaranteed by the principal(s) of the
borrower. The Company also makes opportunistic real estate
purchases apart from its lending activities.
Forward Looking Statements
This press release may contain forward-looking
statements. All statements other than statements of historical
facts contained in this press release, including statements
regarding our future results of operations and financial position,
strategy and plans, and our expectations for future operations, are
forward-looking statements. Such forward-looking statements are
subject to several risks, uncertainties and assumptions as
described in the Annual Report on Form 10-K for 2023 filed with the
U.S. Securities and Exchange Commission (the “SEC”) on April 1,
2024. Because of these risks, uncertainties and assumptions, any
forward-looking events and circumstances discussed in this press
release may not occur. You should not rely upon forward-looking
statements as predictions of future events. Neither the Company nor
any other person assumes responsibility for the accuracy and
completeness of any of these forward-looking statements. The
Company disclaims any duty to update any of these forward-looking
statements. All forward-looking statements attributable to the
Company are expressly qualified in their entirety by these
cautionary statements as well as others made in this press release.
You should evaluate all forward-looking statements made by the
Company in the context of these risks and uncertainties.
Investors:Email:
investors@sachemcapitalcorp.com
Sachem Capital (AMEX:SACH)
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