Sachem Capital Corp. Completes 20% Investment in Shem Creek Capital LLC to Further Diversify Business Model

Core Viewpoint - Sachem Capital Corp. has acquired a 20% membership interest in Shem Creek Capital, LLC for $5 million, with an option to acquire an additional 10% by early 2027, indicating a strategic investment in the private credit funds managed by Shem Creek [1][2]. Group 1: Investment Details - The acquisition amount for the 20% interest in Shem Creek Capital is $5 million [1]. - Sachem has invested approximately $47 million with Shem over the past four years, generating attractive double-digit returns with no losses to date [2]. - The investment in Shem Creek is expected to diversify Sachem's business model and expand its asset management capabilities [2]. Group 2: Company Overview - Sachem Capital Corp. operates as a mortgage REIT, focusing on originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property [3]. - The company provides short-term secured, nonbanking loans to real estate investors for property acquisition, renovation, and development [3]. - Sachem's primary underwriting criteria include a conservative loan-to-value ratio, with loans secured by first mortgage liens on real estate [3].