Sachem Capital Corp. Completes 20% Investment in Shem Creek Capital LLC to Further Diversify Business Model
Sachem Capital Corp. (NYSE American: SACH) has acquired a 20% membership interest in Shem Creek Capital, for $5 million. This strategic move aims to diversify Sachem's business model and expand into asset management. Shem Creek Capital, established in 2008, specializes in commercial real estate finance, focusing on first mortgage loans in the Northeastern United States.
Key points:
- Sachem has the option to acquire an additional 10% stake by 2027
- Sachem has previously invested $47 million with Shem, generating double-digit returns
- The partnership is expected to drive growth and deliver strong risk-adjusted returns for investors
Sachem Capital Corp. (NYSE American: SACH) ha acquisito un interesse di partecipazione del 20% in Shem Creek Capital, per 5 milioni di dollari. Questa mossa strategica mira a diversificare il modello di business di Sachem ed espandersi nella gestione degli attivi. Shem Creek Capital, fondata nel 2008, si specializza nella finanza immobiliare commerciale, concentrandosi su prestiti ipotecari di primo livello nel Nord-Est degli Stati Uniti.
Punti chiave:
- Sachem ha l'opzione di acquisire un ulteriore 10% entro il 2027
- Sachem ha precedentemente investito 47 milioni di dollari con Shem, generando rendimenti a doppia cifra
- Si prevede che la partnership stimoli la crescita e fornisca solidi rendimenti aggiustati per il rischio agli investitori
Sachem Capital Corp. (NYSE American: SACH) ha adquirido un interés de membresía del 20% en Shem Creek Capital, por 5 millones de dólares. Este movimiento estratégico tiene como objetivo diversificar el modelo de negocio de Sachem y expandirse en la gestión de activos. Shem Creek Capital, establecida en 2008, se especializa en finanzas de bienes raíces comerciales, centrándose en préstamos hipotecarios de primer nivel en el noreste de los Estados Unidos.
Puntos clave:
- Sachem tiene la opción de adquirir un 10% adicional para 2027
- Sachem ha invertido anteriormente 47 millones de dólares con Shem, generando rendimientos de dos dígitos
- Se espera que la asociación impulse el crecimiento y ofrezca sólidos rendimientos ajustados al riesgo para los inversores
Sachem Capital Corp. (NYSE American: SACH)는 Shem Creek Capital의 20% 지분을 500만 달러에 인수했습니다. 이 전략적 움직임은 Sachem의 비즈니스 모델을 다각화하고 자산 관리로 확장하기 위한 것입니다. Shem Creek Capital은 2008년에 설립되었으며, 북동부 미국에서 첫 번째 담보 대출에 중점을 두고 상업용 부동산 금융에 전문화되어 있습니다.
주요 사항:
- Sachem은 2027년까지 추가로 10%의 지분을 인수할 수 있는 옵션이 있습니다
- Sachem은 이전에 Shem과 함께 4700만 달러를 투자하여 두 자릿수 수익을 창출했습니다
- 파트너십은 성장을 촉진하고 투자자에게 강력한 위험 조정 수익을 제공할 것으로 예상됩니다
Sachem Capital Corp. (NYSE American: SACH) a acquis un intérêt de participation de 20 % dans Shem Creek Capital, pour 5 millions de dollars. Ce mouvement stratégique vise à diversifier le modèle commercial de Sachem et à s'étendre dans la gestion d'actifs. Shem Creek Capital, fondée en 2008, se spécialise dans le financement immobilier commercial, en se concentrant sur les prêts hypothécaires de première priorité dans le nord-est des États-Unis.
Points clés :
- Sachem a la possibilité d'acquérir une participation supplémentaire de 10 % d'ici 2027
- Sachem a précédemment investi 47 millions de dollars avec Shem, générant des rendements à deux chiffres
- On s'attend à ce que le partenariat stimule la croissance et fournisse des rendements solides ajustés au risque pour les investisseurs
Sachem Capital Corp. (NYSE American: SACH) hat eine Mitgliedschaft von 20% an Shem Creek Capital für 5 Millionen Dollar erworben. Diese strategische Entscheidung zielt darauf ab, das Geschäftsmodell von Sachem zu diversifizieren und in die Vermögensverwaltung zu expandieren. Shem Creek Capital, gegründet im Jahr 2008, spezialisiert sich auf die Finanzierung von Gewerbeimmobilien, wobei der Fokus auf erstklassigen Hypothekendarlehen im Nordosten der Vereinigten Staaten liegt.
Wichtige Punkte:
- Sachem hat die Option, bis 2027 einen zusätzlichen Anteil von 10% zu erwerben
- Sachem hat zuvor 47 Millionen Dollar in Shem investiert, was zweistellige Renditen generiert hat
- Die Partnerschaft wird voraussichtlich das Wachstum fördern und starke risikoadjustierte Renditen für Investoren liefern
- Acquisition of 20% stake in Shem Creek Capital for $5 million
- Option to acquire additional 10% stake by 2027
- Previous $47 million investment with Shem generating double-digit returns
- No losses reported on investments with Shem despite challenging economic conditions
- Diversification of Sachem's business model
- Expansion into asset management
- Potential for significant growth and strong risk-adjusted returns
- None.
Insights
This 20% investment in Shem Creek Capital for
Sachem's investment in Shem Creek Capital is a strategic play in the commercial real estate finance sector. Shem's focus on value-add multifamily, workforce housing and industrial properties aligns with current market trends, potentially offering Sachem exposure to high-demand segments. The Northeast focus provides geographical diversification for Sachem. However, investors should be aware that the value-add strategy carries inherent risks, especially in a fluctuating interest rate environment. The no-loss track record is impressive, but past performance doesn't guarantee future results. This move could position Sachem well if the commercial real estate market remains robust, but it also increases their exposure to sector-specific downturns.
While the investment in Shem Creek Capital offers Sachem diversification benefits, it also introduces new risk factors. The option to increase stake to 30% by 2027 provides flexibility but requires careful market timing. The double-digit returns with no losses are noteworthy, but this perfect record may not be sustainable long-term, especially given potential economic headwinds. Sachem's expansion into asset management through this deal adds operational complexity and potential regulatory considerations. Investors should monitor how well Sachem manages this transition and whether the synergies between the firms materialize as expected. The deal's success will largely depend on Shem's continued performance and the broader commercial real estate market conditions.
BRANFORD, Conn., Sept. 11, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) announced today it has acquired a
John Villano, CEO of Sachem Capital Corp., commented: “Over the past four years, Sachem has invested approximately
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
FAQ
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