SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 13, 1998
AmeriVest Properties Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-14462 84-1240264
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
7100 Grandview Avenue, Suite 1, Arvada, Colorado 80002
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (303) 421-1224
Item 2. Acquisition or Disposition of Assets
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On July 13, 1998, the Registrant completed the acquisition of 11 office
buildings (the "Acquired Buildings") in the State of Texas. The Acquired
Buildings contain an aggregate of approximately 200,000 square feet. The
aggregate purchase price for the Acquired Buildings consisted of approximately
$6.1 million in cash, the assumption of $192,000 of debt, and the issuance of
207,200 shares of Registrant's Common Stock. Of the Acquired Buildings, 10 were
purchased by the Registrant's AmeriVest Properties Texas Inc. subsidiary and one
was purchased by the Registrant's AmeriVest Properties Odessa Inc. subsidiary.
The cash portion of the purchase price was financed primarily with a $6,000,000
loan from TransAtlantic Capital Company L.L.C., an affiliate of Deutsche Bank
Securities Inc. The loan is secured by the 10 properties purchased by AmeriVest
Properties Texas Inc. as well as three other properties owned by AmeriVest
Properties Texas Inc.
The following table summarizes information concerning the seller of each
property, the cash consideration paid for each property, the debt assumed with
respect to one of the properties, and the number of shares of the Registrant's
Common Stock issued in connection with the purchase of each property.
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Registrant's
Seller Property Cash Note Assumed Shares
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Charles W. Austin (1) 6060 Interstate West 40 $ 1,023,400 N/A 51,200
Amarillo, TX
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Arlington Building (2) 2561 Matlock Road $ 770,000 $ 192,000 -0-
Partnership Arlington, TX
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Wendt Development (3) 800 Block of E. Wendt St. $ 708,000 N/A 6,300
Corporation Bellville, TX
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TEXBAUER Corporation (4) 190 San Elizario Road $ 646,500 N/A 32,500
Clint, TX
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WLK Properties, Inc. (5) 1460 Walnut Street $ 310,300 N/A 3,300
Columbus, TX
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BPP-Lubbock, Inc. (6) 1739 Highway 159 South $ 198,500 N/A 10,300
Hempstead, TX
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INNSON Corporation (7) 4105 Victory Drive $ 599,700 N/A 8,100
Marshall, TX
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Charles W. Austin (8) 102 Bryan $ 495,600 N/A 24,000
Mission, TX
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Charles W. Austin (9) 4th & Sherman $ 1,135,800 N/A 56,800
Paris, TX
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INNSON Corporation (10) 311 North 5th Street $ 145,000 N/A 7,400
Temple, TX
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Opal Partners (11) 3603 Andrews Highway $ 80,000 N/A 7,300
Odessa, TX
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Total Consideration Paid For All $ 6,112,800 $ 192,000 207,200
Properties
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The respective purchase prices for the Acquired Buildings were determined
through negotiations between the Registrant and the respective sellers.
2
The properties purchased by Registrant as well as three properties
previously purchased by Registrant in the State of Texas are managed by Melsama
Corporation. Melsama Corporation is owned by John Dzubinski, who also is the
president of Melsama Corporation. Mr. Dzubinski is a minority owner of certain
of the sellers of the Acquired Buildings, and, as a result of the purchase of
the Acquired Buildings by Registrant, Mr. Dzubinski received an aggregate of
approximately $43,000 in cash and 3,827 shares of Registrant's Common Stock.
Item 7. Financial Statements And Exhibits.
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(a) Financial Statements Of Business Acquired
The financial statements required by this section will be filed by
amendment.
(c) Exhibits.
Exhibit Index
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Exhibit
Number Description
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10.1(a) Form Of Commercial Contract To Buy And Sell Real Estate
10.1(b) Schedule Of Material Terms Of Commercial Contracts To Buy And
Sell Real Estate
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 28, 1998 AMERIVEST PROPERTIES INC.
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By: /s/ James F. Etter
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James F. Etter
President