Exhibit 99.1
AMERIVEST PROPERTIES ANNOUNCES DENVER ACQUISITION;
BUYS CENTERRA OFFICE BUILDING FOR $18,700,000
DENVER, CO, November 12, 2002 -- AmeriVest Properties Inc. (AMEX: AMV)
announced today that it has acquired the Centerra office building, located in
Denver, Colorado for $18,700,000. The Centerra Building contains 186,000
rentable square feet and is 80% leased.
The Centerra Building is located in the southeast quadrant of the City and
County of Denver, immediately adjacent to the intersection of I-25 and Colorado
Boulevard. The 17-story building and seven-story parking garage on 1.15 acres of
land was built in 1982 and is leased to 36 tenants, with an average tenant size
of 4,200 square feet. The Centerra Building is located directly adjacent to
AmeriVest's 141,000 square foot Sheridan Center project.
The Centerra Building is being purchased at a first year capitalization
rate in excess of 10.5%. The purchase price of $18,700,000 ($100/SF) is being
paid with $13,100,000 from the proceeds of a loan from Fleet Bank and the
balance paid in cash.
Charles Knight, President and chief operating officer of AmeriVest, said,
"This is the second acquisition to be funded from the proceeds of AmeriVest's
follow-on common stock offering which was completed in June 2002. We look
forward to the contribution this and future acquisitions will make to our funds
from operations. Centerra fits AmeriVest's target acquisition profile, with a
diversified rent roll in terms of both lease expirations and business sectors.
This property offers a strong mid-town location with great visibility and
access, as well as a range of amenities important to our tenant base, including
an in-house deli and exercise facility. We intend to upscale the property by
adding AmeriVest's standard package of amenities and services to tenants, such
as our state-of-the-art conference room facility."
The current rent roll of the Centerra Building includes 19,000 square feet
leased to United Air Lines, Inc. "We are aware of the uncertainties regarding
United," said Knight. "As frequent travelers and Denver residents, we support
United in its quest to restructure outside of bankruptcy. Nevertheless, this is
a great small tenant building which we are pleased to own, regardless of the
outcome of United's negotiations."
AmeriVest Properties Inc., with its principal office in Denver, Colorado,
owns 25 office properties and is focused on serving small to mid-sized office
tenants in select markets. Its common stock is listed on the American Stock
Exchange under the symbol "AMV."
In addition to historical information, this press release contains
forward-looking statements and information under the 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 operating results may differ
materially from what is expressed or forecasted in this press release. In
particular, the factors that could cause actual operating results to differ
materially include, without limitation, 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 2001 Annual Report on Form 10-KSB and from time to time
in the Company's filings with the Securities and Exchange Commission.
ACQUISITION SUMMARY
CENTERRA OFFICE BUILDING
Centerra is a Class "A" seventeen-story building on a 1.15-acre site in Denver,
Colorado.
Year Built: 1982
Building Size: 186,000
Occupancy: 80%
Capital Improvements: AmeriVest will improve the property with the small
tenant amenities it offers in all its properties,
including a common area conference room and electronic
building directory.
Building Description: The office tower floor plate offers 12,000 rentable
square feet on the upper floors, with smaller floors
toward the base due to the building's entry atrium and
garage entries, uniquely accommodating tenants of
varying square foot requirements. The building is an
architecturally distinct, glass curtain wall and brick
veneer structure, with an attractive landscape
environment around the perimeter. Access is provided
by the I-25 and Colorado Boulevard interchange, and
the property enjoys unobstructed mountain views to the
West. Building systems include: five elevators,
automatic sprinklers, multiple zone HVAC, and a card
reader building access system.
Parking: 587 spaces of structured parking (3.2 spaces per 1,000
SF)
Purchase Price: $18,700,000 ($100/SF)
Closing Date: November 12, 2002
Average Tenant Size: 4,200 SF
First Year Cap Rate: 10.5% +
Investment Opportunity: To acquire the superior building for small and
mid-sized tenants in the South Colorado Boulevard
submarket at an attractive going-in cap rate with a
plan to substantially improve the building and
increase occupancy over the near term.
2002 #####