Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PEORIA, AZ-AmeriVest Properties, based in Denver, has paid nearly $12.8 million for its first Arizona acquisition, rolling the 96,076-sf Arrowhead Fountains Office Building into its 22 office portfolio. The 92.6%-occupied office building at 16150 N. Arrowhead Fountains Center Dr. in Peoria is just the beginning for AmeriVest’s plans for the Arizona market.

AmeriVest president Charles Knight tells GlobeSt.com that a second office building buy should close in December and a third property could go under contract by year’s end. The Phoenix market is high on AmeriVest’s radar screen due to its fast growth and popularity among small-size tenants, an AmeriVest target audience.

“We’ve been wanting to get into Phoenix for a long time,” Knight says. AmeriVest is eyeing properties classified class A and B.

AmeriVest says it bought Arrowhead Fountains at a first-year cap rate of more than 10%. The deals calls for $3.4 million in cash and assumption of an existing $9.3-million mortgage at a floating rate of LIBOR plus 150 basis points. The mortgage matures Dec. 5, 2003. The acquisition represents the first transaction from the proceeds of an AmeriVest common stock offering completed in late July, says William Atkins, AmeriVest chairman and CEO.

The class A property was developed by Newport Beach, CA-based Koll Development Co. It fronts Loop 101 and south of Bell Road in one of the region’s fastest-growing metro sections. Arrowhead Fountains Office Building, situated on five acres, is part of a 95-acre, mixed-use development that abuts the Arrowhead Towne Center regional mall in the northwest submarket.

AmeriVest Properties caters to small to mid-size tenants in select markets. The average tenant size at the three-year-old Arrowhead Fountains is 4,156 sf. The roster includes some of the biggest names in the financial industry and bears a lease rollover of just 3.8% in 2002. Tenants include Charles Schwab, Salomon Smith Barney, Robert Half International, Dain Rauscher, Wells Fargo Home Mortgage and Employers Mutual Casualty Co.

Part of the take-over plan calls for adding amenities found at other AmeriVest properties–aimed at beefing up the occupancy. That, says the company, will start with a common conference room and electronic building directory.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.