BRANFORD, CONN. AND LOS ANGELES — Sachem Capital Corp. (NYSE: SACH), a Connecticut-based real estate finance company, and Los Angeles-based Industrial Realty Group (IRG) have entered into a definitive contribution agreement to form a new industrial REIT with a market value of $3.4 billion. The deal is expected to close by the end of the year.
Under the terms of the agreement, IRG will contribute 98 industrial properties from its portfolio of 200 assets to Sachem. Once complete, the newly formed company will operate as IRG Realty Trust Inc. (IRGT) and is expected to have an industrial portfolio with a gross real estate asset value of $2.9 billion. In addition, the new company will carry Sachem’s approximately $470 million (as of March 31, 2026) in direct and indirect mortgage loans, investments in developmental and owned real estate and other assets.
The transaction values Sachem’s common shares at $2 per share, representing a 90 percent premium to the company’s 30‑day volume weighted average price. Upon closing, IRGT Inc. will focus on mission‑critical industrial infrastructure that supports manufacturing and distribution users. Assets that are not being contributed will continue to be owned and operated by IRG’s existing private business.
“This accretive transaction provides a clear step forward for Sachem shareholders and IRG stakeholders creating a powerful industrial platform with greater scale and a strategy built for sustained growth,” says John Villano, Sachem’s chairman and CEO. “We expect the combination to improve our cost of capital, resulting in improved cash flow generation over time. This transaction will also enable us to compete for the best lending opportunities and will deliver significantly improved risk-adjusted returns to shareholders.”
“We are excited that this transaction will bring a high-quality industrial real estate portfolio to the public market with scale, diversification and a clear operating strategy,” adds Stuart Lichter, founder and chairman of IRG. “IRG has deep experience owning and operating industrial properties, and we expect that upon the close of the transaction, it will be one of the largest publicly listed industrial REITs in the country.”
The stock price of Sachem Capital opened at $1.12 per share on Monday, May 18, the day the agreement was announced, up about 25 percent from the price of 90 cents per share a year ago.
- Taylor Williams