Exhibit 99.1
NEWS RELEASE
Contact:
Sheri Henry
Chief Financial Officer (ext. 132)
sherih@amvproperties.com | | 1780 South Bellaire Street, Suite 100
Denver, CO 80222
Ph: (303) 297-1800
Fax: (303) 296-7353 | | Listed: AMEX
Trading Symbol: AMV
www.amvproperties.com |
AMERIVEST ANNOUNCES SALE OF SCOTTSDALE NORTE IN PHOENIX
DENVER, CO, September 21, 2006 — AmeriVest Properties Inc. (AMEX: AMV), a real estate investment trust serving small to medium size office tenants, announced today that it completed the sale of its Scottsdale Norte office building in Scottsdale, Arizona. Scottsdale Norte, a 79,689 square-foot office property, was sold for $18,000,000, or approximately $225 per square foot, to Koll/PER, LLC (Koll/PER), a limited liability company owned by The Koll Company of Newport Beach, California and the Public Employee Retirement System of Idaho (PERSI). The estimated cash proceeds of approximately $11.0 million, after payoff of the first mortgage, closing costs and adjustments, will be accumulated with other proceeds and available, subject to the expenses and other costs of the Company, for distribution to shareholders under the plan of liquidation approved by AmeriVest shareholders. Detailed information regarding this closing is included at the end of this press release.
“We are pleased to complete the second of what we expect will be eight scheduled closings for the portfolio, said Charles Knight, CEO of AmeriVest. Since execution of the purchase and sale agreement in July, AmeriVest and the purchaser have been working diligently with all of our lenders to complete the loan assumptions required for the remaining properties as quickly as possible. Although we have made significant progress, the approval and documentation process for certain loans is taking longer than we initially expected, especially for the conduit and securitized loans. In addition, we were recently notified by Teachers Insurance and Annuity Association of America, the lender on our Arrowhead, Kellogg and Sheridan Center properties, that on August 31, 2006 they sold their interest in that loan to Morgan Stanley Mortgage Capital Inc., which may affect the timing and conditions of the assumption of that loan. At present, we still expect to complete all sales prior to December 31, 2006. By late October, we anticipate that we will have more clarity on the timing of closings of the remaining properties and the estimated costs of completing the liquidation and winding up process. The Board plans to update its estimates of the range and timing of liquidating cash distributions in a similar time frame.”
The Board of Directors of AmeriVest has not yet established any dates for the payment of liquidating distributions. There can be no assurance with respect to the timing or amount of any distribution or distributions to be made by AmeriVest, or that any other closings will occur under the purchase and sale agreement or otherwise.
Company Information
AmeriVest Properties Inc., with its principal office in Denver, Colorado, is a company in liquidation. Prior to liquidation approval, AmeriVest provided Smart Space for Small Business® in Denver, Phoenix, and Dallas, through the acquisition, repositioning and operation of multi-tenant office buildings in those markets. In May 2006, the Company’s shareholders approved a plan of complete liquidation. Further information about AmeriVest is available at www.amvproperties.com.
The Koll Company, with its principal office in Newport Beach, California, currently owns and manages approximately 2.7 million square feet of existing multi-tenant, light industrial and suburban office space and has an additional 1.1 million square feet under development or in the planning stage. Further information on Koll is available at www.koll.com.
The Public Employee Retirement System of Idaho (PERSI) is a $9 billion public pension plan headquartered in Boise, Idaho. Their website is www.persi.state.id.us. PERSI is advised by Chadwick Saylor Capital Management Inc., a registered investment advisor based in Los Angeles and Atlanta. Their website is www.chadwicksaylor.com.
In addition to historical information, this press release contains forward-looking statements and information under federal securities laws. These statements are based on expectations, estimates and projections about the industry and markets in which AmeriVest operates, management’s beliefs and assumptions made by management. While AmeriVest management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management’s control. As such, these statements and information are not guarantees of future performance, and actual results may differ materially from what is expressed or forecasted in this press release. In particular, the factors that could cause actual results to differ materially include, without limitation, the uncertainties with closing any or all of the anticipated asset sales, continued qualification as a real estate investment trust, the effects of general and local economic and market conditions, competition, regulatory changes, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development and acquisition activity, development and construction costs, insurance risks, the costs and availability of financing, potential liability relating to environmental matters and liquidity of real estate investments and other risks and uncertainties detailed in AmeriVest’s 2005 Annual Report on Form 10-K, AmeriVest’s Proxy Statement for its 2006 annual meeting and from time to time in the Company’s filings with the Securities and Exchange Commission.
Asset Sales Information
| | Greenhill | | Scottsdale | | | | | |
| | Park | | Norte | | | | | |
| | 8/17/2006 | | 9/21/2006 | | Total | | | |
Market | | Dallas | | Phoenix | | | | | |
RSF | | 248,249 | | 79,689 | | 327,938 | | | |
Occupancy: % leased | | 84 | % | 100 | % | | | | |
Closing date | | 8/17/2006 | | 9/21/2006 | | | | | |
| | | | | | | | | |
Contract purchase price | | $ | 29,800,000 | | $ | 18,000,000 | | $ | 47,800,000 | | | |
Price per square foot | | $ | 120.04 | | $ | 225.88 | | $ | 145.76 | | | |
| | | | | | | | | |
Closing Costs and Adjustments | | | | | | | | | |
| | | | | | | | | |
Contract purchase price | | $ | 29,800,000 | | $ | 18,000,000 | | $ | 47,800,000 | | 100 | % |
| | | | | | | | | |
Sales Expenses | | | | | | | | | |
Commissions | | (268,200 | ) | (135,000 | ) | (403,200 | ) | (0.8 | )% |
Filing, title and other fees | | (5,905 | ) | (715 | ) | (6,620 | ) | 0.0 | % |
Title insurance | | (95,591 | ) | (12,240 | ) | (107,831 | ) | (0.2 | )% |
Total sales expenses | | (369,696 | ) | (147,955 | ) | (517,651 | ) | (1.0 | )% |
| | | | | | | | | |
Closing Prorations | | | | | | | | | |
Rent prorations | | (159,671 | ) | (58,682 | ) | (218,353 | ) | (0.5 | )% |
Accrued interest | | (2,222 | ) | (29,759 | ) | (31,981 | ) | (0.1 | )% |
Transfer of security deposits | | (174,055 | ) | (118,807 | ) | (292,862 | ) | (0.6 | )% |
Property taxes payable | | (322,723 | ) | (156,201 | ) | (478,924 | ) | (1.0 | )% |
Other prorations | | (49,808 | ) | (49,640 | ) | (99,448 | ) | (0.2 | )% |
Capital repair credit | | (200,000 | ) | — | | (200,000 | ) | (0.4 | )% |
Transfer of tenant improvements to buyer | | (167,000 | ) | (110,649 | ) | (277,649 | ) | (0.6 | )% |
Total prorations | | (1,075,479 | ) | (523,738 | ) | (1,599,217 | ) | (3.4 | )% |
Total adjustments to sale price | | (1,445,175 | ) | (671,693 | ) | (2,116,868 | ) | (4.4 | )% |
| | | | | | | | | |
Net proceeds to seller | | 28,354,825 | | 17,328,307 | | 45,683,132 | | 95.6 | % |
| | | | | | | | | |
First mortgage payoff/assumption | | — | | (6,457,644 | ) | (6,457,644 | ) | (13.5 | )% |
| | | | | | | | | |
Release of net escrow balance to seller | | — | | 86,400 | | 86,400 | | 0.2 | % |
| | | | | | | | | |
Net cash retained by seller | | $ | 28,354,825 | | $ | 10,957,063 | | $ | 39,311,888 | | 82.3 | % |
