The building was constructed in 1982 on a 1.15-acre site. It includes a seven-story parking garage. Currently, it has 36 tenants, including Elk Grove Township, IL-based United Airlines, which has mulled bankruptcy. Although the average tenant there takes 4,600 sf, United has 19,000 sf at Centerra.
"We are aware of the uncertainties regarding United," says Charles Knight, president and chief operating officer of AmeriVest. "As frequent travelers and Denver residents, we support United in its quest to restructure outside of bankruptcy. Nevertheless, this is a great small-tenant building which we are pleased to own, regardless of the outcome of United's negotiations."
The Centerra Building is located directly adjacent to AmeriVest's 141,000- sf Sheridan Center project.
The Centerra Building is being purchased at a first-year capitalization rate in excess of 10.5%. The purchase price of $100 per sf is being paid with $13.1-million from a loan from Fleet Bank and the balance in cash.
"This is the second acquisition to be funded from the proceeds of AmeriVest's follow-on common stock offering which was completed in June," says Charles Knight, president and chief operating officer of AmeriVest. "Centerra fits AmeriVest's target acquisition profile, with a diversified rent roll in terms of both lease expirations and business sectors. This property offers a strong mid-town location with great visibility and access, as well as a range of amenities important to our tenant base, including an in-house deli and exercise facility. We intend to upscale the property by adding AmeriVest's standard package of amenities and services to tenants, such as our state-of-the-art conference room facility."
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