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ADDISON, TX-AmeriVest Properties Inc. has spent another $14.5 million to eliminate a ground lease for Greenhill Park, bought in December 2003 for $10.5 million with an 80-year term left on the land contract.

According to a press release, AmeriVest has been paying $54,000 per month for the 5.2-acre ground lease at 14131-35 Midway Rd. in Addison. In 2006, the monthly payment was set to jump to $72,000 or $863,000 per year for the balance of the term.

“As long-term owners, we prefer to own fee interests rather than leaseholds,” Charles Knight, president and COO of the Denver-based AmeriVest, says in the release. “When the opportunity to acquire the Greenhill Park land became available, it was the right long-term decision to buy it.” AmeriVest bought the 252,318-sf, class A office property–a 12-story tower, three-story garden building and five-level parking garage–from the Archon Group, headquartered in nearby Irving.

AmeriVest says it tapped an unsecured revolving credit facility with Ohio-based KeyBank, but is eyeing alternatives for restructuring the debt with a first mortgage on the entire asset. The blended first-year cap rate is 8.6%, calculated on a cash basis.

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