AmeriVest liquidating itself

AmeriVest Properties Inc. has approved a plan to liquidate the company. The Denver-based self-administered and self-managed real estate investment trust (AMEX: AMV) said the plan is subject to approval by stockholders holding a majority of the company's outstanding shares of common stock. The company expects to present the liquidation plan "as soon as reasonably practicable," according to a news release.

AmeriVest Properties, with offices at 1780 S. Bellaire St., at one time had about 60 employees and $45 million in sales. Its market capitalization is about $108.5 million.
The company has primarily invested in and operated commercial office buildings in select markets. It has about a dozen core properties in Denver, Dallas and Phoenix, and has also had properties in Indianapolis.

Under the liquidation plan, AmeriVest Properties intends to sell its assets on an orderly basis, to pay or provide for its liabilities, and to distribute its remaining cash to stockholders. Company officials estimate that liquidating distributions will be paid over a period of between 6 months and two years, and that stockholders could receive between $4.20 and $4.80 per share in total distributions over the liquidation period.
In the news release, Charles Knight, president and CEO, said the company's board of directors believes the plan will "maximize stockholder value," and that the decision came after a "long and thoughtful process" by the board.

In November 2004, the board authorized and retained the investment banking firm Bear Stearns to advise the company on various strategic, financial and business alternatives, including the potential sale or merger and other possible transactions.
In September 2005, AmeriVest Properties announced a strategic asset sale and operational restructuring plan to dispose of five properties, repay and restructure outstanding bank debt and transition property management to other firms.

AmeriVest Properties has had discussions with prospective companies to buy the company, but no binding offer has been made. The company retained Trammell Crow Co. to serve as real estate adviser and broker in connection with the execution of the liquidation plan and sales of the properties in all markets.

© 2006 American City Business Journals Inc.