Sachem Capital and Industrial Realty Group announced a definitive contribution agreement to create IRG Realty Trust, Inc. (“IRGT”), a combined industrial real estate platform with an implied enterprise value of approximately $3.4 billion as of March 31, 2026. The deal will reposition Sachem from a mortgage-focused REIT into what the companies describe as a top-10 publicly listed industrial REIT by enterprise value.
Under the agreement, IRG will contribute 98 industrial assets from its broader 200-property portfolio to Sachem. Upon completion of the transaction, IRGT is expected to own 98 industrial properties with a gross real estate asset value of approximately $2.9 billion, along with Sachem’s roughly $470 million of total assets, including mortgage loans, developmental real estate investments, and other holdings.
The combined company will focus on mission-critical industrial infrastructure supporting manufacturing and distribution tenants across the United States. The companies said the portfolio is diversified geographically, by tenant, and by industry, while also offering substantial embedded upside through mark-to-market rent growth opportunities.
The transaction values Sachem common shares at $2.00 per share, representing a 90% premium to the company’s 30-day volume-weighted average price. Following the merger, IRG is expected to own approximately 94.1% of the combined company through operating partnership units, while existing Sachem shareholders will retain approximately 5.9% ownership on a fully diluted basis.
The companies also announced that IRGT is expected to complete a 20-to-1 reverse stock split concurrent with the closing of the transaction, implying a post-split reference share price of $40.00. In addition, Scotiabank is expected to work on arranging a new credit facility for the combined entity.
According to the announcement, the transaction is intended to provide an immediate strategic transformation for Sachem shareholders by combining IRG’s industrial property platform with Sachem’s established real estate capital solutions business. Management believes the combination will create multiple long-term growth opportunities through industrial rent growth, acquisitions, and lending activities.
Sachem CEO John Villano said the transaction would create a scaled industrial platform positioned for sustained growth while preserving the company’s ability to provide creative capital solutions to real estate developers and investors.
IRG Founder and Chairman Stuart Lichter said the deal would bring a large-scale industrial real estate portfolio to the public market with diversification and operational scale, adding that the combined company is expected to become one of the largest publicly listed industrial REITs in the United States.
The combined company is expected to benefit from what management described as meaningful mark-to-market rent growth opportunities, as many leases within the contributed portfolio are believed to be below current market rates. The companies also said IRGT is expected to generate durable cash flows supported by industrial real estate operations and complementary lending activities.
Management noted that IRGT is expected to launch with net debt-to-EBITDA in the mid-8x range, with a long-term goal of reducing leverage below 6x through organic NOI growth, disciplined capital allocation, and balance sheet management.
The future board of directors is expected to consist of seven members, including at least four independent directors. Stuart Lichter is expected to serve as Chairman of the Board, while John Villano is expected to remain on the board following the closing of the transaction.
The transaction was unanimously approved by Sachem’s board of directors and is expected to close by the end of 2026, subject to customary closing conditions, including shareholder approval.
KEY QUOTES:
“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. In addition to becoming one of the largest owners of industrial assets in the country with sizable mark-to-market opportunity, Sachem’s direct and indirect mortgage capabilities will also continue to provide creative capital solutions to real estate developers and investors. We expect the combination to improve our cost of capital, which should result in improved cash flow generation over time. We believe this transaction will enable us to compete for the best lending opportunities and will deliver significantly improved risk-adjusted returns to shareholders. We are excited about the opportunity for Sachem shareholders to participate in the long-term value creation this transaction will unlock.”
John Villano, Chief Executive Officer, Sachem Capital Corp.
“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. With a dynamic portfolio grown over five decades, 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. Backed by IRG’s experience in strategic real estate execution and acquisitions and IRGRA’s active portfolio management, IRGT will be positioned to deliver a sustainable pathway to strong cash flow generation. We will be aligned with all stakeholders on day one, with our large ownership position, experienced property management team, and focus on driving long-term value creation.”
Stuart Lichter, Founder And Chairman, Industrial Realty Group
