AmeriVest Properties Announces Sale of Keystone Office Park and Completion of Previously Announced Strategic Asset Sale Plan.DENVER -- AmeriVest Properties Inc. (AMEX AMEX See: American Stock Exchange :AMV AMV Anime Music Video AMV Avian Myeloblastosis Virus AMV Alfalfa Mosaic Virus AMV Army Motor Vehicle AMV Assisted Mechanical Ventilation AMV Armored Maintenance Vehicle AMV Accredited Meter Verifier AMV Annulus Master Valve ) announced today that it has completed the sale of Keystone Office Park in Indianapolis. Keystone Office Park, a 114,822-square-foot office property in the Carmel submarket, was sold for $9,371,165, or approximately $82 per square foot, to a foreign institutional investor Foreign Institutional Investor (FII) is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated. . AmeriVest recorded an impairment loss in the fourth quarter of 2005 of $1.6 million on this property and does not expect to record any material gain or loss on the sale for financial reporting purposes. The property was approximately 79% leased at the time of sale. The transaction will produce estimated net cash proceeds of approximately $4 million, after repayment of approximately $4.8 million in first mortgage debt, including approximately $200,000 in prepayment penalties Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. , and approximately $550,000 in closing and related costs, including rent, operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. and real estate tax pro-rations, security deposits and tenant improvement credits. The proceeds will be used to repay indebtedness under AmeriVest's new secured credit facility, paying approximately $300,000 to satisfy the remaining balance of this facility, with the full $10 million available for future working capital needs. The sale of Keystone will also result in approximately $3.5 million in cash available to AmeriVest to be used for general corporate purposes. "The sale of Keystone Office Park completes the strategic asset sale plan, announced September 1, 2005, as the most recent step in our review of strategic alternatives," said Charles Knight Charles Knight may refer to:
After the sale of Keystone, the AmeriVest portfolio consists of 12 high-quality office properties in Dallas, Phoenix and Denver, comprising approximately 1.7 million square feet. The portfolio was 91.2% occupied at December 31, 2005. Company Information AmeriVest Properties Inc., with its principal office in Denver, provides Smart Space for Small Business(R) in Dallas, Phoenix and Denver through the acquisition, repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc environmental matters and liquidity of real estate investments and other risks and uncertainties detailed in AmeriVest's 2004 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and from time to time in the Company's filings with the Securities and Exchange Commission. |
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