AmeriVest Pays $23M for Sister Building

The 87.9%-leased Parkway Centre III, built in 2000 at 2745 N. Dallas Parkway in Plano, is occupied by 23 tenants, of which slightly less than 19% of their leases expire next year. On the average, tenants occupy 5,750 sf. The seller is Brangus Ltd. of Dallas. Two years ago, AmeriVest paid $22 million for the 151,968-sf Parkway Centre II, now 93.3% leased with an average rent of $20.11 per sf.

The Denver-based AmeriVest's newest buy comes with a first-year capitalization rate of about 8.4%. The sale closed with $5.5 million in cash and $15.2 million derived from a non-recourse, five-year loan at a 4.47% fixed-rate interest from a major insurance company, according to an AmeriVest press release issued this morning. The remaining $2.7 million satisfied a 1031 Exchange from the March sale of four Texas properties, primarily leased to Bank of America.

The six-story building, trading at $153 per sf for $4.4 million higher than its 2004 assessment, is north of the Shops of Willow Bend and south of Legacy Office Park. And like its other purchases, AmeriVest's acquisition strategy is mortared in "an attractive going-in cap rate" and upside in the occupancy of class A office buildings in strong suburban submarkets.

In May, AmeriVest spent $16.8 million for the 114,598-sf Hackberry View in Las Colinas, offering small-size tenants class A office space in a favored corporate headquarters landing ground. The building, bought at 95.8% occupancy, is now fully leased, with the rent average standing at $20.81 per sf.