Sachem Capital Corp. expands its capabilities with an acquisition
BRANFORD, Conn., Oct. 10, 2022 (GLOBE NEWSWIRE) — Sachem Capital Corp. (NYSE American: SACH) today announced that it has acquired substantially all of the commercial assets of Urbane New Haven, LLC (“Urbane”), a premier real estate company specializing in all phases of development and construction, including architecture, design, procurement and marketing. Based in New Haven, Connecticut, with 11 employees, Urbane has successfully developed and overseen hundreds of real estate projects in multiple markets across the country for over 21 years. As part of the acquisition, Eric O’Brien, one of Urbane’s owners, was hired by Sachem as a new Senior Vice President, Asset Management. Mr. O’Brien’s primary responsibilities include overseeing construction management and real estate development. The purchase price for Urbane’s assets was 300,000 common shares of Sachem. The transaction closed on October 6, 2022.
John Villano, CPA, CEO of the company, said, “The acquisition of Urbane is both strategic and highly synergistic, as the Urbane team will oversee our construction finance business, which has grown significantly over the recent years. Having Urbane in-house provides Sachem with invaluable construction expertise, which should allow us to accept larger and more profitable construction loans, as well as further vertically integrate our lending platform. We have worked with Urbane for over a year now, helping us manage complex real estate development and construction projects from Connecticut to Florida for which Sachem has provided financing. Fees for these construction management services are paid for by the client, providing us with new revenue streams to help ensure the highest level of oversight and planning diligence on all projects as we continue to diversify. in new asset classes where our capital is better. protected and the risk of loss is minimized, with the aim of maximizing shareholder value.
“We anticipate that this transaction will achieve two important objectives for the Company. First, our construction finance business will benefit from exceptional development and construction expertise, which will not only add value to our borrowing client base, but will also provide additional protection to our invested capital. Second, if a loan runs into difficulty, we now have the ability to remediate and, perhaps, complete projects by minimizing the costs associated with distressed assets. Additionally, the inclusion of the Urbane team is especially timely given the current state of the real estate market, which is facing challenges due to labor and material shortages, as well as demand disruption caused by large and frequent increases in interest rates. Internally, as we continue to improve our underwriting process and prudently manage portfolio risk, the inclusion of Urbane in our build origination process will be a significant addition to our capabilities as we continue our growth. Having greater flexibility than traditional lenders will also help further differentiate Sachem Capital, allowing us to take on additional projects on favorable terms with attractive margins, while continuing to grow our market share,” concluded Mr. Villano. .
Eric O’Brien, President and Founder of Urbane New Haven, said, “We are excited to combine our capabilities with Sachem, which we believe will truly differentiate the company in the marketplace. At Urbane, our fundamental vision is rooted in the family culture, which we share with Sachem. Over the past 8 years we have had a productive relationship with Sachem and look forward to growing together given our combined expertise. Our ability to visualize end results and create pleasant environments will serve us well in the future. Given current market conditions, we believe we can leverage underperforming assets and convert them into meaningful benefits for Sachem, through optimized design, development and execution. Urbane is a firm with many versatile members whose objective is to focus on the design, management and construction of spaces. Our team appreciates the accomplishment of their work and we believe this will add a new profit center for Sachem in the future.
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