X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-Charles Knight, president and CEO of Denver-based AmeriVest, says that as part of the company’s strategic review and analysis of its various markets and submarkets, it will sell properties that do not fit its portfolio as the company moves forward.

“The decision to dispose of these particular assets at this time reflects our desire to stabilize and de-leverage our balance sheet and focus our efforts on properties that will be accretive to earnings in the near term, and which are located in improving markets where we can still add value,” says Knight.

Releasing these assets will allow the company to take advantage of historically low cap rates, “while preserving the enterprise value of the remaining assets and the company as a whole,” he says. “We expect the proceeds from the sale of these assets will be sufficient to repay associated mortgages and satisfy the debt repayment requirements under the proposed amendments to our credit facilities and, depending on actual proceeds received, potentially generate additional funds to support operations, share repurchases or a special capital gains dividend to our shareholders.”

As part of the sale, AmeriVest will be left with only three properties in the Denver area. The five buildings it will be selling are: Financial Plaza in Mesa, AZ; AmeriVest Plaza and Panorama Falls in Englewood, CO; Chateau Plaza in Dallas; and Keystone Office Park in Indianapolis. No definitive agreement for the sale of any asset has been executed, and there can be no assurance as to the timing or terms of any such sales, the company warns.

The primary bank group for AmeriVest has extended the payment date under its secured and unsecured credit facilities to Sept. 14, and has reached an agreement in principle with AmeriVest to further amend the loan agreements for its secured and unsecured credit facilities. Prior to these extensions, AmeriVest was required to repay at least $10 million of its secured facility and at least $5 million of its unsecured facility by Sept. 1.

The terms of the proposed amendments would further extend the pay-down date to Jan. 17, 2006, and extend the maturity date with respect to the secured facility from Jan. 31, 2006, to April 1, 2006, when both facilities will mature. The amendments are also expected to modify certain covenant requirements and collateral provisions and add management employment agreement requirements. AmeriVest and the bank group expect to complete documentation of these amendments shortly.

AmeriVest also has retained retained Trammell Crow Services Inc. as property manager for its Denver portfolio, effective on Sept. 30. Trammell Crow is already the leasing broker on this portfolio. As part of this transition approximately nine property-level and corporate positions in Denver will be eliminated, triggering a severance expense in the quarter of up to $75,000. In another matter, AmeriVest amended employment agreement with Knight through June 2006 and a severance agreement with its chief investment Officer, John Greenman, effective on Jan. 17.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.