DeLuca Veale starts 14th year with Victoria expansion
RealStream was founded in 2014 by Richard DeLuca, Jonathan Veale and Jim Stewart to allow local people the opportunity to invest in a Vancouver Island based portfolio of income producing commercial properties.
They have recently added two new Courtenay properties — 730 Grant St. and 961 England Avenue — representing their 9th and 10th acquisitions to the portfolio. The properties also bring their Comox Valley component to four properties. With 10 buildings — approximately 210,000 sq. ft. in total building area, 471,000 sq. ft. in land and a total of 31 tenants — RealStream’s total asset value is now over $50 million.
“It adds diversification to those investors who may also have a portfolio of stocks and bonds,” says Jim Stewart, RealStream co-founder and Real Estate Asset Manager. “We believe, with the quality of properties and tenants we’ve put together, the portfolio offers investors a conservative real estate investment. We also believe that as far as real estate investments go, this is one of the best ways to invest.”
A key component Stewart looks for in their portfolio is quality tenants. One of the best quality tenants you can have is the Provincial Government. Both of the new Courtenay properties boost the Provincial Government component of their tenancy mix to about one third.
“That was one of the things that really attracted us to these two properties,” says Stewart. “Our portfolio is 100% occupied currently. We have no vacancies. We’ve put together a portfolio of high-grade income producing properties, made up of quality buildings and tenants.”
This allows everyday investors access to an investment grade real estate product, something that is typically not easy for someone to achieve on their own.
“When we talk to investors they are probably most impressed by the type of tenants we have in the portfolio,” tells Stewart. “People are typically not able to say that Shoppers Drug Mart, TD Bank or the national accounting firm MNP are their tenants. These are big companies that require premium real estate. I think RealStream investors are proud to own these properties and have these types of tenants.”
An interesting attribute is that when people invest in the portfolio, they’re not coming in with just the most recent acquisitions, they’re investing in the entire portfolio. Many private real estate investments will only acquire one property.
With DeLuca Veale’s RealStream offering, people invest in the entity that owns all of the properties.
“I think this is important,” says Stewart, “And something we’re really proud of is topping the $50 million mark, which is a milestone. We’re also very proud that our portfolio currently has over 85 investors and our performance numbers are looking very strong.”
“Our one-year rate of return is 10.1%. Our 3-year annualized return is 11.6%. And since its inception, dating back to June of 2014, we are compounding at 10.9%. And all those figures are after fees. That’s the return to the investor and we are very proud of that.”
Stewart also notes that the goal has always been to target performance in the 7-9% range. “And so far,” he says, “We’ve done significantly better than that.”
“While past performance is no guarantee of future performance, we feel strongly that our attention to detail and our experienced management group will continue to invest wisely with an eye for both safety and growth,” commented RealStream co-founder Richard DeLuca.
To make RealStream accessible to more families, Jonathan Veale noted that they have reduced the minimum investment from $100,000 to $50,000.
“We are excited about the success of RealStream in the first few years and we want to make this exciting investment opportunity available to more local investors.”
Future plans are to keep growing. “With more growth we increase our diversity and our investor base,” says Stewart. “We see this first $50 million as really just our starting block. We would like to see a figure of $200 million within the next seven years leaving lots of room for new investors.”
They’ve also always been proud of the fact, as well, that RealStream is mostly local investors, investing in predominately Vancouver Island properties, in a portfolio created and run by a local management team based right here in the Comox Valley.
“That seems to sit well with our investors,” says Stewart.
For more information about RealStream Income Properties, visit www.realstream.ca or call 250.890.2000 and talk to Richard DeLuca, Jim Stewart or Jonathan Veale to see if RealStream is a good fit for your portfolio.