AmeriVest Properties Announces Dallas Acquisition: Buys Greenhill Park Building for $10,500,000

Business Wire, Dec 5, 2003

Business Editors

DENVER--(BUSINESS WIRE)--Dec. 5, 2003

AmeriVest Properties Inc. (AMEX:AMV) announced today that it has acquired the Greenhill Park office complex in Addison, Texas, for $10,500,000.

The property contains approximately 252,000 rentable square feet and is 76% leased.

Greenhill Park is a class "A" office building located in the town of Addison at the intersection of Midway Road and Spring Valley in the Far North Dallas submarket approximately one mile west of the Dallas North Tollway. The submarket, which is concentrated on and around the Tollway, is the largest suburban market in Dallas, encompassing 27.5 million square feet. Greenhill Park consists of two buildings, a 12-story tower and a 3-story garden building, situated on 5.178 acres. Greenhill Park borders the prestigious Greenhill School to the west. The property, originally a development of the Trammell Crow Company, was built in 1986 and is leased to 23 tenants, with an average tenant size of 8,333 square feet. Greenhill Park is subject to a ground lease with 80 years left on the term. The annual rent payment is approximately $642,000 until 2006, when such annual rent payment increases to approximately $863,000. Greenhill Park is being purchased at a first year capitalization rate in excess of 10%. The purchase price of $10,500,000 ($42/SF) is being paid with $5,250,000 from the Company's senior secured revolving line of credit and the balance in cash.

William Atkins, Chairman and CEO of AmeriVest, stated: "Greenhill Park represents our third acquisition in the Dallas area and will compliment our Chateau Plaza building in Uptown Dallas and our Parkway Centre II building in Plano." Atkins further noted: "Greenhill Park is a high-quality and architecturally distinct physical asset, where floor plates are well-suited for AmeriVest's target tenant base of small- to medium-size businesses. Though AmeriVest typically purchases properties only on a fee simple basis, we felt comfortable in this case purchasing a leasehold interest due to the long remaining tenor on the ground lease, and the superior economics we achieve at this extremely low basis on our purchase. We estimate replacement cost for the leasehold improvements to exceed $120/SF. The acquisition of Greenhill Park adds an important additional piece to our product offering in Dallas and adds more geographic balance to our entire portfolio."

Company Information

AmeriVest Properties Inc., with its principal office in Denver, Colorado, owns 30 office properties and provides Smart Space for Small Business(SM) in select markets. To receive AmeriVest's latest news and information, visit our website at www.amvproperties.com.

In addition to historical information, this press release contains forward-looking statements and information under the federal securities laws. These statements are based on expectations, estimates and projections about the industry and markets in which AmeriVest operates, management's beliefs and assumptions made by management. While AmeriVest management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release. In particular, the factors that could cause actual operating results to differ and availability of financing, potential liability relating to environmental matters and liquidity of real estate investments and other risks and uncertainties detailed in AmeriVest's 2002 Annual Report on Form 10-KSB materially include, without limitation, continued qualification as a real estate investment trust, the effects of general and local economic and market conditions, competition, regulatory changes, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, development and construction costs, insurance risks, the costs KSB and from time to time in the Company's filings with the Securities and Exchange Commission.

ACQUISITION SUMMARY
GREENHILL PARK

Greenhill Park is a class "A" building on a 5.178-acre site in
Addison, Texas.

Year Built:             1986

Building Size:          251,913 SF

Occupancy:              76%

Capital Improvements:   AmeriVest will improve the property with the
                        small tenant amenities it offers in all its
                        properties, including a common area conference
                        room, electronic building directories and
                        upgraded common area and tenant finishes.

Building Description:   The property is situated on a 5.178-acre,
                        irregular-shaped parcel located on Midway Road
                        and Spring Valley Road. There are two office
                        buildings, a 12-story tower and a 3-story
                        garden building. The exterior consists of
                        brick veneer with buff limestone details, with
                        lobby finishes consisting of a combination of
                        brick, travertine and mahogany panels.

Parking:                60 surface spaces and 740 structured spaces,
                        3 levels of above ground parking and 2 levels
                        of underground parking. (3.2 spaces per
                        1,000 SF)

Purchase Price:         $10,500,000 ($42 per SF)

Closing Date:           December 4, 2003

Average Tenant Size:    8,333 SF

First Year Cap Rate:    10% +

Investment Opportunity: To acquire a superior building for small- and
                        medium-size tenants in rapidly growing
                        Addison, located along the Dallas North
                        Tollway in the Far North Dallas office
                        sub-market at an attractive going-in cap rate
                        with a plan to increase the building occupancy
                        over the long term.