EX-99.1
7
a06-3555_1ex99d1.htm
EXHIBIT 99
Exhibit 99.1
NEWS RELEASE
CONTACT:
Becky Nichols
1780 South Bellaire
Street
Listed:
AMEX
Investor Relations (Ext. 104)
Suite 100
Trading Symbol:
AMV
beckyn@amvproperties.com
Denver, CO 80222
www.amvproperties.com
Fax: (303) 296-7353
AMERIVEST
PROPERTIES ANNOUNCES SALE OF FINANCIAL PLAZA
AND AMENDED LOAN
AGREEMENTS WITH PRIMARY BANK GROUP
DENVER,
CO, January 23, 2006 -
AmeriVest
Properties Inc. (AMEX: AMV) announced today that it has completed the sale of
Financial Plaza in Mesa, Arizona. Financial Plaza, a 310,838 square-foot Class A
office property was sold for $55,000,000, or approximately $177 per square foot
to Crescent Real Estate Equities Limited Partnership. AmeriVest will record a
net gain on the sale of approximately $15.5 million for financial reporting
purposes. The property was approximately 91% leased at the time of sale. The
estimated net cash proceeds of approximately $30 million, after repayment of
approximately $23 million in first mortgage debt and approximately $2 million
in closing and related costs and adjustments, will be used to repay
indebtedness under AmeriVest's unsecured credit facility, leaving a balance due
under this facility of less than $1 million. The sole remaining asset to be
sold under AmeriVest's strategic asset sale plan announced September 1,
2005, Keystone Office Park in Indianapolis, Indiana, is under contract.
AmeriVest
also announced a further loan agreement with its primary bank group which
amends its unsecured revolving credit agreement and reinstates a revolving
credit facility of up to $10 million to be used for working capital and other
limited corporate purposes. The revolver is secured by the Company's Greenhill
Park property and matures December 28, 2006. The amendment also modifies
certain covenant requirements and collateral provisions and requires the
Company to extend the employment agreement with its Chief Executive Officer
through the maturity of the loan.
The
Company also announced amendments to the Change in Control and Employment
Agreements with two of its officers as follows: The term of the employment
agreement with Charles Knight, President and CEO, was extended through December 31,
2006, which satisfies the employment agreement requirement of the new loan
amendment. The term of the employment agreement with John Greenman, Chief
Investment Officer, was extended 8 days through January 25, 2006 to allow Mr. Greenman
to complete the Financial Plaza transaction announced today.
Copies
of the amended loan agreement and employment agreements will be filed with the
Securities and Exchange Commission in a Form 8-K, together with pro forma
financial information relating to the Financial Plaza transaction described
above.
Company
Information
AmeriVest Properties
Inc., with its principal office in Denver, Colorado, provides
Smart Space for Small Business®
in Denver,
Phoenix, Dallas, and Indianapolis through the acquisition, repositioning and
operation of multi-tenant office buildings in those markets. To receive
AmeriVest's latest news and information, visit our website at
www.amvproperties.com.
In addition
to historical information, this press release contains forward-looking
statements and information under federal securities laws. These statements are
based on expectations, estimates and projections about the industry and markets
in which AmeriVest operates, management's beliefs and assumptions made by
management. While AmeriVest management believes the assumptions underlying its
forward-looking statements and information are reasonable, such information is
necessarily subject to uncertainties and may involve certain risks, many of
which are difficult to predict and are beyond management's control. As such,
these statements and information are not guarantees of future performance, and
actual operating results may differ materially from what is expressed or
forecasted in this press release. In particular, the factors that could cause
actual operating results to differ materially include, without limitation,
continued qualification as a real estate investment trust, the effects of
general and local economic and market conditions, competition, regulatory
changes, the ability to enter into new leases or renew leases on favorable
terms, dependence on tenants' financial condition, the uncertainties of real
estate development and acquisition activity, development and construction
costs, insurance risks, the costs and availability of financing, potential
liability relating to environmental matters and liquidity of real estate
investments and other risks and uncertainties detailed in AmeriVest's 2004
Annual Report on Form 10-K and from time to time in the Company's filings
with the Securities and Exchange Commission.

EX - 99 . 1 7 a06 - 3555 _ 1ex99d1 . htm EXHIBIT 99 Exhibit 99 . 1 NEWS RELEASE CONTACT : Becky Nichols 1780 South Bellaire Street Listed : AMEX Investor Relations ( Ext . 104 ) Suite 100 Trading Symbol : AMV beckyn@amvproperties.com Denver , CO 80222 www.amvproperties.com Fax : ( 303 ) 296 - 7353 AMERIVEST PROPERTIES ANNOUNCES SALE OF FINANCIAL PLAZA AND AMENDED LOAN AGREEMENTS WITH PRIMARY BANK GROUP DENVER , CO , January 23 , 2006 - AmeriVest Properties Inc . ( AMEX : AMV ) announced today that it has completed the sale of Financial Plaza in Mesa , Arizona . Financial Plaza , a 310,838 square - foot Class A office property was sold for $ 55,000,000 , or approximately $ 177 per square foot to Crescent Real Estate Equities Limited Partnership . AmeriVest will record a net gain on the sale of approximately $ 15.5 million for financial reporting purposes . The property was approximately 91 % leased at the time of sale . The estimated net cash proceeds of approximately $ 30 million , after repayment of approximately $ 23 million in first mortgage debt and approximately $ 2 million in closing and related costs and adjustments , will be used to repay indebtedness under AmeriVest 's unsecured credit facility , leaving a balance due under this facility of less than $ 1 million . The sole remaining asset to be sold under AmeriVest 's strategic asset sale plan announced September 1 , 2005 , Keystone Office Park in Indianapolis , Indiana , is under contract . AmeriVest also announced a further loan agreement with its primary bank group which amends its unsecured revolving credit agreement and reinstates a revolving credit facility of up to $ 10 million to be used for working capital and other limited corporate purposes . The revolver is secured by the Company 's Greenhill Park property and matures December 28 , 2006 . The amendment also modifies certain covenant requirements and collateral provisions and requires the Company to extend the employment agreement with its Chief Executive Officer through the maturity of the loan . The Company also announced amendments to the Change in Control and Employment Agreements with two of its officers as follows : The term of the employment agreement with Charles Knight , President and CEO , was extended through December 31 , 2006 , which satisfies the employment agreement requirement of the new loan amendment . The term of the employment agreement with John Greenman , Chief Investment Officer , was extended 8 days through January 25 , 2006 to allow Mr . Greenman to complete the Financial Plaza transaction announced today . Copies of the amended loan agreement and employment agreements will be filed with the Securities and Exchange Commission in a Form 8 - K , together with pro forma financial information relating to the Financial Plaza transaction described above . Company Information AmeriVest Properties Inc . , with its principal office in Denver , Colorado , provides Smart Space for Small Business ® in Denver , Phoenix , Dallas , and Indianapolis through the acquisition , repositioning and operation of multi - tenant office buildings in those markets . To receive AmeriVest 's latest news and information , visit our website at www.amvproperties.com . In addition to historical information , this press release contains forward - looking statements and information under federal securities laws . These statements are based on expectations , estimates and projections about the industry and markets in which AmeriVest operates , management 's beliefs and assumptions made by management . While AmeriVest management believes the assumptions underlying its forward - looking statements and information are reasonable , such information is necessarily subject to uncertainties and may involve certain risks , many of which are difficult to predict and are beyond management 's control . As such , these statements and information are not guarantees of future performance , and actual operating results may differ materially from what is expressed or forecasted in this press release . In particular , the factors that could cause actual operating results to differ materially include , without limitation , continued qualification as a real estate investment trust , the effects of general and local economic and market conditions , competition , regulatory changes , the ability to enter into new leases or renew leases on favorable terms , dependence on tenants ' financial condition , the uncertainties of real estate development and acquisition activity , development and construction costs , insurance risks , the costs and availability of financing , potential liability relating to environmental matters and liquidity of real estate investments and other risks and uncertainties detailed in AmeriVest 's 2004 Annual Report on Form 10 - K and from time to time in the Company 's filings with the Securities and Exchange Commission .
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