DENVER-AmeriVest Properties Inc., a locally headquartered REIT that is liquidating its portfolio, has sold three buildings totaling 347,994 sf for $46 million. Two of the buildings are in the Denver region and the other is in Phoenix. The new owner is Koll/PER LLC, a joint venture of Newport Beach, CA-based Koll Co. and the Public Employee Retirement System of Idaho.

The Denver-area office properties involved in the transaction are the 140,290-sf Sheridan Center (80% occupied) in Denver and the 111,741-sf Kellogg Building (100% occupied) in Littleton. The Phoenix-area property is the 96,203-sf Arrowhead Fountains office building (96% occupied) in Peoria. The individual per-sf acquisition prices were $76, $150 and $192, respectively. Koll managing principal Alan Airth says the management and leasing of all three properties will be outsourced.

This is the seventh closing under AmeriVest’s July 2006 purchase and sale agreement with Koll/PER, which calls for Koll/PER to acquire 1.74 million sf in 17 buildings in 12 properties in Arizona, Colorado and Texas for $273 million. Three of the 12 properties have yet to change hands. AmeriVest says a final closing will be scheduled as loan assumption approval is received from its mortgage lender.

Steve Suechting of Trammell Crow Co. in Denver heads up the team of brokers that is handling the portfolio sale for AmeriVest. When the transaction is completed, the Koll/PER venture will have invested equity capital of more than $200 million and hold total assets of approximately $500 million. The assets expand the Koll Co.’s overall real estate ownership portfolio to more than 4.3 million sf of existing multi-tenant, light industrial and suburban office buildings in Southern California, Las Vegas, Salt Lake City and the new markets it is entering with the AmeriVest acquisition.

The Kellogg Building in Littleton sits on a 4.8-acre site on West Dry Creek Circle immediately west of the intersection of West Dry Creek Road and South Broadway Avenue. Built in 1983, the eight-story building features a red brick exterior with dark-framed reflective glass. Parking is provided for 286 vehicles in surface lots and an attached one-story parking structure.

The three-building Sheridan Center in Denver sits on 3.7 acres on the east and west sides of South Bellaire Street at Colorado Avenue, south of East Mexico Avenue. The steel, brick and glass buildings range from four to eight stories and eight, five and four stories. The property has 400 surface parking spaces.

Arrowhead Fountains in Peoria sits on a five-acre site on Arrowhead Fountains Center Drive at the intersection of Paradise Lane. Built in 1998, the property has surface parking for 380 vehicles. About one-third of the spaces are covered.

AmeriVest estimates its cash proceeds from the sale of the three assets will be $18 million after payoff of the mortgage encumbering the three properties, closing costs and adjustments. The proceeds will be distributed to shareholders under the plan of liquidation approved by AmeriVest shareholders.

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