AmeriVest Properties Disposes of Non-Core Texas Properties

    Business Editors

    DENVER, Colo.--(BUSINESS WIRE)--March 3, 2005--AmeriVest Properties Inc. (AMEX:AMV) today announced they have completed a Deed-In-Lieu Agreement to return 13 non-core properties in Dallas to the lender. The properties, consisting of approximately 222,542 square feet, were leased primarily to various agencies of the State of Texas and were located in Temple, Clint, El Paso, Hempstead, Lubbock, Marshall, Columbus, Paris, Mission, Arlington, Bellville and Amarillo Texas. The buildings secured a loan in the amount of $5,572,897, bearing interest at 7.66% through August 1, 2028, and were carried on AmeriVest's books at a value of $5,178,096, subsequent to an impairment of $1,160,000 recorded during the fourth quarter of 2004. In 2004, these properties generated $1.5 million in revenue and contributed approximately $500,000 of net operating income to the Company's results of operations.
    "These properties were acquired by prior management which operated under a very different strategy," said John Greenman, Chief Investment Officer. "While initially these properties provided substantial cash flow to our shareholders, their continued economic viability was dependent on our ability to retain the State as a tenant, which became increasingly more difficult. As the cash flow declined and as the buildings continued to require increased capital investment, the Board determined that returning these properties to the lender was in the best long-term interests of the Company and its shareholders."

    Company Information

    AmeriVest Properties Inc., with its principal office in Denver, Colorado, provides Smart Space for Small Business(TM) in Denver, Phoenix, Dallas, and Indianapolis through the acquisition, repositioning and operation of multi-tenant office buildings in those 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 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 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 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 2003 Annual Report on Form 10-KSB and from time to time in the Company's filings with the Securities and Exchange Commission.

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CONTACT: AmeriVest Properties Inc. Investor Relations Kim P. Boswood, 303-297-1800 ext. 118 Fax: 303-296-7353 kimb@amvproperties.com

KEYWORD: TEXAS COLORADO INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION SOURCE: AmeriVest Properties Inc.

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