In addition to paying off the mortgage, AmeriVest will take back a $364,170 promissory note with a six-month term, allowing the buyer time to seek to fully stabilize and sell or refinance the property in 2006 or sometime after.

At the time of sale, the property, which was fully renovated by the joint venture in early 2002, was approximately 85% leased to 17 tenants. In connection with the sale, AmeriVest expects to record an impairment of approximately $400,000 that effectively eliminates the carrying value of its 20% interest and will be recorded in the company's third quarter results. Net sales proceeds will be used to reduce the company's debt.

"This transaction is the first to close in a series of strategic asset sales announced earlier this month," says Charles Knight, CEO of AmeriVest. "We are pleased to have been able to receive full payment of our mortgage and expect to receive full payment of our receivable note next year. Unfortunately our equity value in Panorama Falls declined due to the sharp fall in market rents that has adversely affected the entire Denver market, particularly the southeast suburban submarket, where Panorama Falls was located."

Panorama Falls, AmeriVest's smallest property at just under 60,000 sf and its only joint venture, was identified as a non-core holding appropriate for disposition during the company's strategic review process this year.