–To Be Acquired for Under $1 Million and Provide Net Income by 10% Per Year–
Black Castle Developments, Inc. (Pink Sheets: BDVI) (“BCD”), a real estate acquisition firm focused on purchasing non-performing notes and bank-owned, income-producing commercial properties, today announced that it has signed a letter of intent to purchase a bulk of ten (10) single family residences located in Fresno, CA from an accredited institutional investor. BCD anticipates entering into escrow by June 30, 2011, subject to the finalization of all terms and conditions.
“We have found an incredibly rare opportunity to buy a dynamic, location-specific and generous income-producing portfolio of homes at an extreme discount. These turnkey homes can generate an abundance of immediate income to our bottom-line profits that can substantially increase shareholder value,” said BCD CEO Jeff Holroyd. “Although this is an LOI, we are committed to the completion of this first phase and the completion of every phase thereafter. This opportunity is just too good to let slip away.”
The agreement represents the first of 25 planned acquisitions with this institutional investor. The family residence portfolio has a total of roughly 250 homes with a combined value of approximately $25,000,000. The homes are located throughout California and are currently occupied. The lease agreements will be transferred with the title to BCD upon the close of each acquisition.
“Over the next 24 months, we plan to acquire 24 additional blocks of 10 single family homes from the institutional investor. Each will be assessed conservatively, managed within our risk-adjusted portfolio and have a clear exit strategy. We anticipate that the completion of each phase will provide 10% net earnings, or a total of $2,000,000 in annual net income, once the entire 25 blocks of 10 homes are acquired,” concluded Holroyd.
About Black Castle Developments, Inc.
Black Castle Developments, Inc. is focused on the direct acquisition of non-performing notes (NPNs) and the development, operation and management of income-producing commercial and residential distressed properties. The Company was founded by executives with over 20 years of experience in commercial real estate finance, origination, negotiation, and transaction execution. Profiling hundreds of NPNs daily in the $1 trillion U.S. loan marketplace, Black Castle Development’s financial deal makers are capitalizing on the unprecedented and opportunistic U.S. real estate market. For more information, visit www.blackcastledevelopments.com.
Statements contained in this news release, other than those identifying historical facts, constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company’s future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbors protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements.
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