Exhibit 99.1
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AMERIVEST PROPERTIES ANNOUNCES ACQUISITION OF KELLOGG BUILDING
IN LITTLETON, COLORADO FOR $13.55 MILLION
DENVER, CO, Dec. 26 -- AmeriVest Properties Inc. (AMEX: AMV) announced today
that it has acquired The Kellogg Building, located in Littleton, Colorado for
$13,550,000. The Kellogg Building contains 112,738 rentable square feet and is
96% leased.
The Kellogg Building is an eight-story multi-tenant office building located in
the Highline Professional Center in Southwest Metropolitan Denver, near the
growing residential community of Highlands Ranch. The building is leased to 41
tenants and features many amenities, including covered parking, common area
conference rooms, an exercise facility with locker rooms, showers and whirlpool,
Western mountain views and direct access to the Highline Canal walking and bike
trail adjacent to the property.
The Kellogg Building is being purchased at a first year capitalization rate in
excess of 10%. The purchase price of $13.55 million ($120 PSF) is being paid
with approximately $4.0 million in cash plus a new loan of $9.5 million bearing
interest at a floating rate equal to the bank's money market rate plus 250 basis
points (4.77% for the initial 12 months), maturing December 21, 2004.
William Atkins, chairman and CEO of AmeriVest, said, "This is our second
acquisition from the proceeds of AmeriVest's common stock offering completed in
July 2001. We are pleased to be able to have found such a high quality building
with wonderful small tenant amenities. The Southwest Denver location balances
our other Denver properties in the Southeast and Colorado Boulevard submarkets
and we expect this property to make a meaningful contribution to FFO during
2002."
AmeriVest Properties Inc., with its principal office in Denver, Colorado, owns
22 office properties and is focused on serving small to mid-sized office tenants
in select markets.
Certain matters discussed in this release are forward-looking statements that
are subject to risks and uncertainties that could cause actual results to differ
materially from those projected, including the risks and uncertainties of
acquiring, owning, operating and disposing of real estate. Such risks and
uncertainties are disclosed in the Company's past and current filings with the
U.S. Securities and Exchange Commission.
ACQUISITION SUMMARY
THE KELLOGG OFFICE BUILDING
The Kellogg Office Building is an eight-story, 112,738 rentable square foot
building on a 4.8-acre site in southwest Metropolitan Denver.
Year Built: 1983
Occupancy: 96.0%
Capital Improvements: AmeriVest will improve the property with the
small tenant amenities it offers in all its
properties, including an upgraded common
area conference room, a new
telecommunications infrastructure, improved
common area finishes and an electronic
building directory.
Building Description: Eight-story high-rise with an average of
14,500 SF floor plates that are ideal for
small tenants. Precast concrete construction
features red brick veneer over concrete
block with reflective insulating glass
windows. Building amenities include an
exercise facility with cardio and weight
machines, hot tub and shower and lockers;
two conference rooms, including a 65-seat
auditorium; a coffee shop on the first floor
and Executive Suites.
Parking: 380 surface parking spaces, including 18
covered spaces (3.4 spaces per 1,000 SF)
Purchase Price: $13,550,000 ($120.00 PSF), all cash subject
to a new mortgage of $9,500,000 bearing
interest at the bank's money market rate
plus 250 bp (4.77% for the initial 12
months), maturing December 21, 2004
Closing Date: December 21, 2001
Average tenant size: 2,556 SF
First Year Cap Rate: 10.0% +
Investment Opportunity: To acquire the leading Class B multi-tenant
office property with historically high
occupancy levels in one of the
fastest-growing submarkets in Denver as well
as maintain and improve those occupancies
with a measured refurbishment program,
adding typical AmeriVest small tenant
amenities.