Exhibit 99.1
AMERIVEST PROPERTIES ANNOUNCES SECOND DALLAS ACQUISITION;
BUYS CHATEAU PLAZA OFFICE BUILDING FOR $22 MILLION
DENVER, CO, November 26, 2002 -- AmeriVest Properties Inc. (AMEX: AMV)
announced today that it has acquired the Chateau Plaza office building, located
in Dallas, Texas for $22,000,000. Chateau Plaza contains 171,000 rentable square
feet and is 98% leased.
Chateau Plaza is located within Dallas' renowned Turtle Creek/Uptown
District. The property's highly visible location at the northwest corner of
McKinney Avenue and Fairmount Street, offers tenants quick access to a multitude
of freeways and the McKinney Avenue trolley line. The 18-story building, on
approximately one acre of land, was built in 1986 and is leased to 10 tenants.
The largest tenant within Chateau Plaza is Dean Foods, which currently leases
120,607 rentable square feet and has been a tenant of the building since 1998.
Dean Foods (formerly Suiza Foods) is a leading national specialty food producer.
The Dean Foods lease terminates in December 2005, however, Dean Foods has an
option to terminate as early as December 2003, upon payment of a substantial
penalty.
Chateau Plaza is being purchased at a first year capitalization rate in
excess of 10.5%. The purchase price of $22,000,000 ($128/SF) is being paid with
$15,400,000 from the proceeds of a loan from Fleet Bank and the balance in cash.
William Atkins, CEO of AmeriVest, said, "This is the third acquisition to
be funded from the proceeds of our June 2002 follow-on common stock offering. It
is also our second core property acquisition in Dallas, which we have identified
as one of our target expansion cities. To acquire a building of this quality in
one of the best sub-markets in Dallas for small and mid-size tenants represents
a tremendous opportunity. Upon the eventual termination of Dean Foods' lease, we
plan to upgrade the building and market this exceptional space to smaller
tenants." "We have not changed our small tenant strategy," said Atkins. "We
believe that Chateau Plaza is the best small tenant building in the market and
will evolve to an appropriate tenant mix over time."
AmeriVest Properties Inc., with its principal office in Denver, Colorado,
owns 26 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
CHATEAU PLAZA OFFICE BUILDING
Chateau Plaza is a Class "A" eighteen-story building on a one-acre site in
Dallas, Texas.
Year Built: 1986
Building Size: 171,000
Occupancy: 98%
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: Versatile floor plates of 8,800 to 17,500 square
feet allow for tenants of varying sizes.
Cast-in-place concrete construction. The ground
floor lobby features Spanish rose-colored granite
floors and walls, accented with wood. Tenant spaces
feature dramatic views from every side of the
building. Building systems include: five elevators,
automatic sprinklers, multiple zone HVAC, complete
fire protection in the building and garage and
computerized security.
Parking: Approximately 500 spaces located in a seven-level
parking structure situated in the lower floors of
the office tower. (2.9 spaces per 1,000 SF)
Purchase Price: $22,000,000 ($128/SF)
Closing Date: November 25, 2002
Average Tenant Size: 16,700 SF (including Dean Foods); 5,200 (excluding
Dean Foods)
First Year Cap Rate: 10.5% +
Investment Opportunity: To acquire what we believe to be the best small to
mid-size tenant building in the Turtle Creek/Uptown
sub-market with a plan to remarket the Dean Foods
space to our target tenants once the Dean Foods
lease terminates.
2002 #####