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DENVER-Today, AmeriVest Properties received an unsolicited offer from the Dallas-based Lincoln Property Commercial Inc. for its office portfolio. In a letter of interest to the Denver-based AmeriVest Properties, Lincoln says it would consider investing a range of $130 million to $150 million of equity above AmeriVest's "estimated current loan balances of approximately $126 million."
Lincoln indicated that the range it quoted was based on analysis of public information and has requested additional information from the company to perform a more thorough analysis. AmeriVest, which serves small- to medium-sized office tenants, currently has approximately $127.5 million in debt.
AmeriVest's board recently adopted a plan to liquidate its 12 remaining officer buildings in Dallas, Denver and Phoenix. The plan is subject to shareholder approval. The company is currently working with Trammell Crow Co., its broker, to prepare offering materials for all of its properties as part of a comprehensive marketing process.
"We appreciate Lincoln's interest in our portfolio," says Charlie Knight, CEO of AmeriVest. "We have received and expect to receive many more indications of interest as a result of our board's recent adoption of a liquidation plan. We intend to achieve the highest value reasonably attainable for our shareholders in an expeditious manner; however, we must caution that until a prospective purchaser has completed their due diligence and a definitive purchase and sale agreement with respect to one or more of the company's properties has been signed there is no agreement on value."
An official from Lincoln's Denver office confirms to GlobeSt.com that the company is interested in AmeriVest's properties, but says he can't discuss it at this time. An executive at Lincoln's Dallas office couldn't be reached at press time.
The offer was met favorably by investors, as AmeriVest's stock was up 3.5% to $4.40 per share soon after the news was released. When the AmeriVest board adopted the liquidation plan, it estimated that shareholders could receive between $4.20 and $4.80 per share after the sale. Trammell Crow declined to comment.
Steve Suechting, of Trammell's Denver office, is the lead broker on the deal. Suechting is working closely with other Trammell Crow brokers in Dallas and Phoenix to sell the properties, either as a portfolio or as individual assets. Trammell Crow is expected to bring the properties to market soon after shareholders approve the liquidation plan is approved, which is expected to occur within the next 45 to 90 days.
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