SOURCE: Delavaco Residential Properties Corp.

Delavaco Residential Properties Corp.

October 21, 2014 09:00 ET

Delavaco Residential Properties Corp Enters Into an Agreement to Purchase Its Third Multifamily Property in Austin Texas

TORONTO, ON--(Marketwired - October 21, 2014) - Delavaco Residential Properties Corp. ("Delavaco" or the "Company") (TSX VENTURE: DVO.U) (OTCQX: DELAF) today announced that it has entered into an agreement to purchase Terrain (the "Property"), a 101-unit multifamily apartment community located in Austin, Texas for a purchase price of $10 million USD.

The Acquisition

Terrain, a 101 unit multifamily property, was built in 1984 and is currently approximately 95% occupied, with average monthly rents of approximately $1,007.00 USD per unit. The Property is located in Williamson Creek in Austin Texas, 5 miles south of the Austin central business district and Capital, and within 0.8 miles of the Company's other two multifamily properties. The Austin central business district is home to many large employers, a thriving entertainment district, numerous restaurants, and a host of outdoor recreational activities in and around Lady Bird Lake. 

Terrain is also in close proximity to St. David's Medical Centre, The University of Texas and St. Edward's College. Several Austin Community Colleges are located nearby as well.

Austin has been ranked "America's fastest growing city" for a fourth year in a row by Forbes. According to bizjournal, 110 people move to Austin every day. Austin's economy continues to expand while the population grows and jobs are created. Texas Workforce Commission reported that Austin employers added 37,000 jobs last year for an increase of 4.5%. The 4.5% unemployment rate in Austin is well below the national average of 6.7% and the state average of 5.5%.

The Lone Star State is making a case for being the next hub for technology jobs. Texas is adding tech and engineering jobs faster than any other state, and is reported as one of the top 10 fastest-growing states for technology careers. In the first half of 2014, Texas added 8,100 tech jobs, nearly a six percent increase, creating a total of 143,300 tech positions across the state.

The aggregate purchase price is payable as follows: cash deposit of $3.5MM and a 10 year 65% loan to value mortgage totaling $6.5 million USD. The mortgage will consist of interest and principal payments with an interest rate of approximately 3.9% and a 30 year amortization. There will be a 5 year interest only component to the loan.

"We are very happy to have successfully negotiated the Terrain acquisition. Austin is an incredible city and the growth is fueled by so many sectors. It has clearly become America's new tech hub and those people need nice places to live. We targeted Texas as a state for the Delavaco portfolio with Austin as our focus, and Terrain fits perfectly," commented Andrew DeFrancesco, Delavaco CEO.

About Delavaco Residential Properties Corp.

Delavaco Residential Properties Corp. was formed on January 27, 2011 to take advantage of the U.S. housing crisis with the goal of significant capital appreciation through the recovery of the housing sector. Now a public company, Delavaco has its shares listed for trading on the TSX Venture Exchange and the OTCQX marketplace in the U.S. Delavaco is focused on the ownership and management of single and multi-family residential properties located principally in the south-eastern United States. Delavaco's real estate portfolio consists of 434 single-family homes in Florida, 312 single-family homes in Georgia, 311 multi-family units in Florida and Texas and 105 single-family units in New Jersey. Delavaco also manages a 316 multi-family unit portfolio in Hollywood Florida. Delavaco's acquisition strategy involves the identification and purchase of under-valued residential properties located in highly populated and dynamic urban centers within the lower to middle income demographic sector. Delavaco's security holders include some of the leading Canadian institutional investors and real estate holding companies.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to Delavaco's intended acquisition focus. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of Delavaco to implement its business strategies; competition; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Additional information about Delavaco Residential Properties Corp. is available at www.delavacoproperties.com or www.sedar.com.

Contact Information

  • For more information please contact:


    Lisa-Marie Iannitelli
    Director of Investor Relations & Business Development
    Delavaco Residential Properties Corp.
    The Exchange Tower
    130 King Street West, Suite 2210
    Toronto, ON M5X 1A9
    Phone: (416) 362-4441
    E-mail: lisa-marie@delavaco.com