John Villano, CPA, the Company's Chief Executive Officer, commented, "We closed 2025 with meaningful progress on our portfolio initiatives, completing two important transactions in the fourth quarter. First, we sold our Westport, Connecticut office asset and used the proceeds to strengthen our liquidity and balance sheet. Second, subsequent to the quarter end, we accomplished a significant step in addressing our legacy Naples, Florida exposure by acquiring the underlying condominium assets and, through our Urbane Capital subsidiary, have assumed the active management, development, and monetization of those assets. Additionally, in early 2026, we extended our Needham credit facility, further strengthening our liquidity and balance sheet flexibility. We remain focused on disciplined capital allocation as we position Sachem to drive long-term shareholder value."
Portfolio and Financing Activities
Sale of Westport, Connecticut Office Asset
During the fourth quarter of 2025, the Company successfully completed the sale of its office property located in Westport, Connecticut. The transaction closed on December 31, 2025, generating net cash proceeds of approximately $19.9 million and realized a book gain of approximately $4.0 million. Proceeds from the sale further strengthened the Company's liquidity position and balance sheet and provide additional flexibility to support portfolio optimization and capital deployment initiatives.
The Westport asset was sourced, managed, and executed through Urbane Capital, the Company's in-house development and asset management platform.
Update on Naples, Florida Assets and Subsequent Events
On February 5, 2026, the Company completed a noncash exchange transaction to acquire 100% of the membership interests of the entity holding the condominium assets associated with its legacy Naples, Florida mortgage loan held for investment having net book value, principal and accrued but unpaid interest and fees, of approximately $39.9 million.
The acquired assets include:
The condominium association,
Three completed condominium units, which are expected to be remarketed for sale immediately under renewed marketing efforts, and
The southern parcel, which is entitled for the development of four additional condominium units. The Company intends to commence construction and marketing activities for these units, with ...
