Delavaco Residential Properties Corp. Provides Update on Possible Transaction, Changes to the Board of Directors and Executive Management and Operations - Seite 2

Mr. Aldecoa has more than 10 years of experience in residential and commercial asset management. Mr. Aldecoa's most recent positions include Regional Vice President of Invitation Homes, a single-family homes operator in the United States with over 45,000 rentals nationwide. In this role, Mr. Aldecoa was instrumental in developing the framework for property management. Mr. Aldecoa also acted as Regional Director, Single-Family Residential/Commercial services for FirstService Residential Realty, LLC where he assisted in the re-development and implementation of a new business segment focused on the single-family homes asset space. Mr. Aldecoa was recruited by the Company in November, 2014 and has brought a wealth of knowledge and structure to the organization. Mr. Aldecoa is an accredited commercial manager, Florida licensed real estate broker and certified apartment manager.

The Board is pleased to add Messrs. Ray and Aldecoa to these interim roles.

Operational Updates

Related Party Loan and Managing Park Colony:

As reported in the Company's first quarter 2015 consolidated results, Mr. DeFrancesco was provided two separate advances in the amounts of approximately $4.3M and $789K in the form of promissory notes bearing interest at a rate of 7.00% per annum, maturing on December 30, 2015 (the "Notes"). The $4.3M Note is dated December 30, 2013 while the $789K Note is dated May 25, 2015. Both Notes resulted from the Company's previous intention to purchase from Mr. DeFrancesco a 316 door multi-family residential unit asset located within the Park Colony Apartment Homes in Hollywood FL (the "Park Colony Property"); a property currently third party managed by GREP Southeast, LLC ("Greystar").

The Company has determined that it no longer desires to purchase this asset and as such the parties have agreed to amend the repayment terms of the Notes by collecting from Mr. DeFrancesco in stages over the duration of the term of the Notes commencing immediately. As of the date of this press release, $200,000 has been repaid under these Notes. Mr. DeFrancesco has provided the Company with security for such indebtedness that will remain in place until the debt has been repaid. The Company and Mr. DeFrancesco have also agreed to amend the $789K Note such that the interest accrued and payable shall commence on the date it was originally funded being October 28, 2013, removing an initial interest free period originally contemplated. The proceeds shall be directed towards working capital.