AmeriVest Acquiring Sheridan Realty Advisors

DENVER-The board of Denver-based AmeriVest Properties Inc., a real estate investment trust which owns 22 office properties serving small to mid-sized tenants, has decided to acquire the property management and administration operations from its outside advisor, Sheridan Realty Advisors, LLC, effective Tuesday. Under the terms of its existing agreement with Sheridan, AmeriVest will exercise its right to purchase the management and advisory business from Sheridan for the sum of $100 plus the book value of the furniture, fixtures and equipment at December 31.

Since the value of the furnishing and equipment is about $50,000, the purchase price would be approximately $50,100.

Sheridan will continue as an outside advisor to the company in connection with capital markets and real estate acquisitions.

Sheridan Realty Advisors, LLC has managed AmeriVest properties since January 2000. Effective Jan. 1, most of Sheridan’s 24 employees will become employees of AmeriVest and will manage day-to-day operations of the company.

AmeriVest will no longer pay administrative, property management and accounting fees to Sheridan as of December 31.

Sheridan will continue to advise AmeriVest with respect to capital market activities, real estate acquisitions and dispositions and major capital projects and will continue to receive a capital project fee and advisory fee based on the value of all real property acquired or developed by AmeriVest during the term of the agreement.

“We are pleased that AmeriVest has grown to a size that enables it to bring property management, accounting and administrative functions in house,” says William Atkins, chief executive officer of AmeriVest. “We recognize that most analysts and institutional investors prefer self-managed REITs. We are now large enough to absorb operating overhead within the company and expect that this change will be perceived positively by our shareholders and the investment community.”