Exhibit 99.1
NEWS RELEASE
Contact: | | 1780 South Bellaire Street, Suite 100 | | |
Sheri Henry | | Denver, CO 80222 | | Listed: AMEX |
Chief Financial Officer (ext. 132) | | Ph: (303) 297-1800 | | Trading Symbol: AMV |
sherih@amvproperties.com | | Fax: (303) 296-7353 | | www.amvproperties.com |
AMERIVEST ANNOUNCES SALES OF CENTERRA
BUILDING IN DENVER, PARKWAY CENTRE II IN DALLAS
AND SOUTHWEST GAS BUILDING IN PHOENIX
DENVER, CO, November 29, 2006 — AmeriVest Properties Inc. (AMEX: AMV), a real estate investment trust which formerly served small to medium size office tenants, announced today that it completed the sale of its Centerra office building in Denver, Colorado; its Parkway Centre II office building in Dallas, Texas; and its Southwest Gas office building in Phoenix, Arizona 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). Centerra, a 187,660 square-foot office property that is 86% occupied, was sold for $24,675,000, or approximately $131 per square foot. Parkway Centre II, a 151,879 square-foot office property that is 89% occupied, was sold for $24,860,000, or approximately $164 per square foot. The Southwest Gas Building, a 145,696 square-foot office property that is 94% occupied, was sold for $19,200,000, or approximately $132 per square foot. The estimated cash proceeds of approximately $32 million, after assignment of the mortgage encumbering the three properties, closing costs and adjustments, will be accumulated with other proceeds and made available, subject to the expenses and other costs of AmeriVest, for distribution to shareholders under the plan of liquidation approved by AmeriVest shareholders. The Company did not incur the $1 million purchase contingency that had been reserved at September 30, 2006 in connection with the remaining sales. Detailed information regarding the proceeds of this sale is included at the end of this press release. This is the eighth and final closing under the July 17, 2006 purchase and sale agreement with Koll/PER. The Company has completed the liquidation of its entire real estate portfolio.
The Board of Directors of AmeriVest previously announced a $3.50 per share initial liquidating distribution payable on November 16, 2006 to shareholders of record as of November 10, 2006, but has not yet established any dates for the payment of subsequent liquidating distributions. There can be no assurance with respect to the timing or amount of any distribution or distributions to be made by AmeriVest.
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 4.8 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. Its 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. Its 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
| | Parkway Centre II, | | Previous | | Total Sales to | | | |
| | Centerra, | | Sales to | | Koll/PER | | | |
| | Southwest Gas | | Koll/PER | | to date | | | |
| | | | | | | | | |
Markets | | Dallas, Denver,
Phoenix | | | | | | | |
RSF | | 485,235 | | 1,255,548 | | 1,740,783 | | | |
Occupancy: % leased | | 89 | % | | | | | | |
Closing date | | 11/29/2006 | | | | | | | |
| | | | | | | | | |
Contract purchase price | | $ | 68,735,000 | | $ | 204,265,000 | | $ | 273,000,000 | | | |
Price per square foot | | $ | 141.65 | | $ | 162.69 | | $ | 156.83 | | | |
| | | | | | | | | |
Closing Costs and Adjustments | | | | | | | | | |
| | | | | | | | | |
Contract purchase price | | $ | 68,735,000 | | $ | 204,265,000 | | $ | 273,000,000 | | 100 | % |
| | | | | | | | | |
Sales Expenses | | | | | | | | | |
Commissions | | (552,803 | ) | (1,666,801 | ) | (2,219,604 | ) | -0.8 | % |
Filing, title and other fees | | (1,450 | ) | (9,875 | ) | (11,325 | ) | 0.0 | % |
Title insurance | | (117,428 | ) | (398,975 | ) | (516,403 | ) | -0.2 | % |
Total sales expenses | | (671,681 | ) | (2,075,651 | ) | (2,747,332 | ) | -1.0 | % |
| | | | | | | | | |
Closing Prorations | | | | | | | | | |
Rent prorations | | (183,722 | ) | (973,458 | ) | (1,157,180 | ) | -0.4 | % |
Accrued interest | | (145,757 | ) | (266,496 | ) | (412,253 | ) | -0.2 | % |
Transfer of security deposits | | (367,248 | ) | (1,028,112 | ) | (1,395,360 | ) | -0.5 | % |
Property taxes payable | | (921,514 | ) | (2,068,489 | ) | (2,990,003 | ) | -1.1 | % |
Other prorations | | (138,094 | ) | (370,090 | ) | (508,184 | ) | -0.2 | % |
Capital repair credit | | (89,464 | ) | (601,850 | ) | (691,314 | ) | -0.3 | % |
Transfer of tenant improvements/leasing commissions | | 159,636 | | (1,339,444 | ) | (1,179,808 | ) | -0.4 | % |
Total prorations | | (1,686,163 | ) | (6,647,939 | ) | (8,334,102 | ) | -3.1 | % |
| | | | | | | | | |
Total adjustments to sale price | | (2,357,844 | ) | (8,723,590 | ) | (11,081,434 | ) | -4.1 | % |
| | | | | | | | | |
Net proceeds to seller | | 66,377,156 | | 195,541,410 | | 261,918,566 | | 95.9 | % |
| | | | | | | | | |
Mortgage payoff/assumption | | (36,530,435 | ) | (88,798,470 | ) | (125,328,905 | ) | -45.9 | % |
| | | | | | | | | |
Release of net escrow balance to seller | | 1,851,531 | | 2,861,774 | | 4,713,305 | | 1.7 | % |
| | | | | | | | | |
Net cash retained by seller (1) | | $ | 31,698,252 | | $ | 109,604,714 | | $ | 141,302,966 | | 51.7 | % |
(1) A distribution of approximately $84.4 million was paid on November 16, 2006.
