Kellogg Building Sells for $120 SF

DENVER-AmeriVest Properties Inc. has paid $13.55 million for the 112,738-sf Kellogg Building in the Highline Professional Center in the southwest suburban area near Highlands Ranch, the largest master-planned community in the metro area. The building is 96% leased. The Kellogg Building is an eight-story, multi-tenant building.

The building has 41 tenants. Amenities include covered parking, common area conference rooms, and an exercise facility with locker rooms, showers and whirlpool. The building also provides views of the mountains to the west andhas direct access to the Highline Canal walking and bike trail.

AmeriVest is buying the building at a first-year cap rate in excess of 10%.

The real estate investment trust is paying $4 million in cash and has a new loan of $9.5 million. The loan has a floating rate equal to the bank’s money market rate plus 250basis points (4.77% for the first year). The loan matures on Dec. 21, 2004.

“This is our second acquisition from the proceeds of AmeriVest’s common stock offering completed in July 2001,” says William Atkins, chairman and chief executive officer of AmeriVest. He says the southwest location balances out its other buildings in the southeast and along the Colorado Boulevard.

He says the property will make a “meaningful contribution” to the company’s FFO in 2002.

AmeriVest owns 22 properties and focuses on serving only small- to medium-sized tenants.