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UPDATE: Shareholder Voices Concern for AmeriVest Liquidation in SEC Document

DENVER-In an SEC filing, North Star Partners' Andrew R. Jones says he is frustrated by the terms of AmeriVest's liquidation. Jones' main point of contention centers on the expected shareholder return and the extensive timetable allotted to sell 12 properties.

By John Rebchook | Updated on February 15, 2006

DENVER-A senior executive of North Star Partners, the largest institutional owner of shares of AmeriVest Properties Inc., voiced disapproval of the way AmeriVest is handling its liquidation plan in a SEC filing. Andrew R. Jones, of Connecticut-based North Star filed a letter in a SEC document to Charlie Knight, president and CEO of the Denver-based REIT. As GlobeSt.com reported earlier , AmeriVest is looking to liquidate its 12 office buildings in Denver, Dallas and Phoenix.

AmeriVest, in an earlier SEC filing, says that it expects shareholders to receive between $4.20 per share to $4.80 per share after the liquidation if it is approved by shareholders. That’s not enough, given this hot commercial real estate market, according Jones. He also doesn’t like the notion that it could take two years to sell the properties.

“While we continue to believe that a plan of liquidation is in the best interest of shareholders, we are disappointed with both the estimated projected distributions and the timetable over which it is expected to occur,” Jones writes in his letter. “For the liquidating distributions to be as low as $4.20 per share, one of two things must happen. Either capitalization rates on the remaining properties will be disappointing versus both current market rates and prior sales, or expenses will be unacceptably high. With the property sales being conducted by a reputable broker, we trust that we will achieve market cap-rates.”

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