BRANFORD, Conn., March 02, 2023 (GLOBE NEWSWIRE) — Sachem Capital Corp. (NYSE American: SACH), a financing company that specializes in originating, underwriting, funding, servicing, and managing a portfolio of first mortgage loans, announced today the Company has entered into a $45 million revolving line of credit with Needham Bank.
Mr. John Warch, Sachem Capital’s Chief Financial Officer, stated, “Given our growing pipeline of opportunities we are pleased to close on this attractive financing as it significantly enhances Sachem’s financial flexibility and liquidity. This additional line of credit provides the financial capacity to further scale our business and execute on our growth strategy. We appreciate the confidence and strong support of Needham Bank as we look to continue to grow into the future.”
“This transaction with Sachem demonstrates Needham Bank’s commitment to the real estate lending market. We look forward to building our relationship with Sachem and supporting them as their lending opportunities grow,” said Joseph Campanelli, Chairman, President and Chief Executive Officer of Needham Bank.
The intended purpose of this line of credit is to support the Company’s working capital needs, general corporate purposes and to fund new mortgage loan originations. The capacity of the revolving credit facility can be increased to $75 million with an accordion expansion feature, which is subject to obtaining participating lender commitments.
Needham Bank is the sole acting Agent Bank.
Additional details relating to the Facility will be available in the Company’s Current Report on Form 8-K, including the exhibits thereto, which the Company expects to file on or before March 2, 2023, and will be available at www.sec.gov.
About Sachem Capital Corp.
Sachem Capital Corp. is a financing REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of first mortgage loans. It offers short-term (i.e., three years or less) secured, nonbanking loan 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 will also make opportunistic real estate purchases apart from its lending activities.