The total purchase price of the buildings is $22 million, plus cash balances, receivables and deferred financing costs less mortgage debt and other liabilities for a net equity value of $6.9 million.

Closing of the transaction is subject to shareholder approval at AmeriVest's annual meeting to be held later this year.

The four-story, two-building complex sits on a 6.9 acre site at 383 to 385 Inverness Drive South. It includes 420 parking spaces, 80 of them underground.

Tenants take from 651 sf to 6,845 sf. The average lease rate is about $24 per sf.

AmeriVest currently holds a 9.639% interest in Sheridan Investments LLC. It plans to issue 1.12 million additional shares of AmericaVest restricted shares, valued at $5.55 per share.

William Atkins, chief executive officer of AmeriVest, notes the buildings are 100% leased and in 1999, the year they were built, they received the National Association of Industrial and Office Properties' Denver Small Office Development of the Year Award.

"The addition of these award-winning small tenant buildings significantly increases the quality of AmeriVest's real estate portfolio,'' Atkins says. ''Not only will these buildings be the newest in our portfolio, they represent the state-of-the-art in high quality workplaces for small to mid-size tenants. These buildings are the prototype for our future value-added redevelopment projects."

The buildings are being purchased from Sheridan Investments, LLC, an affiliate of Sheridan Realty Advisors, LLC, advisor to AmeriVest. Atkins Ltd. Partnership is a 14.06% owner of Sheridan Investments and an affiliate of CEO Atkins. Alexander S. Hewitt, a vice president and secretary of AmeriVest, is a 16.06% owner of Sheridan Investments.

Instant Insights /

AmeriVest to Pay $22 Mil for Office Complex

Related Stories

Recommended For You