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Home > Investing > Spotlight on REITs: Amerivest Properties INC

Spotlight on REITs: Amerivest Properties INC

Money Manager | Monday, May 21st, 2012

Amerivest Properties INC: this was a large Real Estate Investment trust that had a very diversified portfolio specializing in office and retail space in the Denver area. It was one of the leading REIT’s with over 1.7 million sq feet of office space, before it liquidated all of its real estate assets in 2006, and dissolved the company.

At first the company thought about a merger with another REIT, but in the end it decided that a total liquidation would be the best way to get there shareholders money back. The liquidation was to create a liquid cash flow for the company to pay off old debts as well as pay off everything that it owed investors and shareholders.

This liquidation started in 2006 with Greenhill Park a large office building that was sold for $273 million, next was Scottsdale Notre another office building in the Denver area that the company sold for $18 million, next was Hackberry view that sold for over $17.5 million, soon the company was able to sell a large office property Parkway Center for $25.6 million, the last office space to be sold as Hampton Court for $17 million, then the company sold Camelback Lakes a lakefront community for over $50 million. Some of these properties had existing mortgages on them, so the net cash made from these sales totalled $91.9 million. All of these properties were sold to Koll/PER LLC the Company still owned about six properties that it was yet to sell off as of 2006.

Amerivest Properties INC then proceeded to pay out shareholders, the company paid out $3.50 per common share in the company, this totalled $84.4 million dollars paid on November 16 2006.

Amerivest Properties INC was based in Denver, Colorado and it provided smart space for offices in Denver, Phoenix and Dallas. Its total revenue in 2005, the year before the liquidation was $35 million dollars, but its revenue growth was extremely low at -22.60% while the number of employees dropped by 81% making the company’s shareholders question where the company was going at that point.

Amerivest Properties is no longer a company, and has sold off all assets to Koll/PER LCC for the grand total of $273 million dollars. The Real Estate Investment Trust business can be either a very profitable business or a very risky one, depending on the market and shareholders faith in the company.

The president and CEO of the company were Charles K Knight and the companies CFO was Sheri Henry, at the time of the liquidation. Amerivest Properties INC is now a product of the dangerous real estate investing trust market, although seeing how the real estate market has been in the past few years the choice to liquidate its assets when it did was probably a smart financial choice.

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