-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IawOwnd9QQrYwFbPwJtxgOCN2MDRxrZDlqHGZhpi0BDorABq+43IlhR6xFBgpWb/ oZqiSfwL1bHWkOnxKM28vA== 0000911420-06-000097.txt : 20060214 0000911420-06-000097.hdr.sgml : 20060214 20060213184317 ACCESSION NUMBER: 0000911420-06-000097 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20060214 DATE AS OF CHANGE: 20060213 GROUP MEMBERS: ANDREW R. JONES GROUP MEMBERS: CIRCLE T EXPLORER MASTER LIMITED GROUP MEMBERS: NORTH STAR PARTNERS II, L.P. GROUP MEMBERS: NORTH STAR PARTNERS, L.P. GROUP MEMBERS: NS ADVISORS, LLC FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: NORTH STAR PARTNERS LP CENTRAL INDEX KEY: 0001007258 IRS NUMBER: 133863788 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 61 WILTON ROAD CITY: WESTPORT STATE: CT ZIP: 06880 BUSINESS PHONE: 2032279898 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: AMERIVEST PROPERTIES INC CENTRAL INDEX KEY: 0000927102 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 841240264 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-53847 FILM NUMBER: 06605795 BUSINESS ADDRESS: STREET 1: 1780 S BELLAIRE ST STREET 2: SUITE 515 CITY: DENVER STATE: CO ZIP: 80222 BUSINESS PHONE: 3032971800 MAIL ADDRESS: STREET 1: 1780 S. BELLAIRE ST. STREET 2: SUITE 515 CITY: DENVER STATE: CO ZIP: 80222 SC 13D/A 1 d1157715.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

SCHEDULE 13D/A
(Rule 13d-101)

Amendment No. 2

INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO
FILED PURSUANT TO RULE 13d-2(a)

AmeriVest Properties Inc.
(Name of Issuer)

Common Stock, Par Value $0.001 Per Share
(Title of Class of Securities)

03071L101
(CUSIP Number of Class of Securities)

North Star Partners, L.P.
274 Riverside Avenue
Westport, CT 06880
Attention: Mr. Andrew R. Jones
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)

Copy to:

Shahe Sinanian, Esq.
Greenberg Traurig, LLP
200 Park Avenue
New York, New York 10166
(212) 801-9200

February 13, 2006
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a Statement on Schedule 13G to report the acquisition that is the
subject of this Schedule 13D and if filing this Schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check
the following box [ ]

(continued on following pages)

- --------------------------------------------------------------------------------------------------------------------
CUSIP NO. 03071L101 13D/A Page 2 of 10 Pages
- --------------------------------------------------------------------------------------------------------------------

1. NAME OF REPORTING PERSON: North Star Partners, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3863788
- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
- ----------------------------------------------------------------------------------------------------------------------

3. SEC USE ONLY
- --------------------------------------------------------------------------------------------------------------------

4. SOURCE OF FUNDS
WC (SEE ITEM 3)
- ---------------------------------------------------------------------------------------------------------------------

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION:
DELAWARE
- --------------------------------------------------------------------------------------------------------------------

NUMBER 7. SOLE VOTING POWER:
OF SHARES 803,371 shares (See Item 5)
------------------------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
------------------------------------------------------------------
------------------------------------------------------------------
OWNED BY -0- (See Item 5)
------------------------------------------------------------------

EACH REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 803,371 shares (See Item 5)
------------------------------------------------------------------

WITH 10. SHARED DISPOSITIVE POWER
-0- (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
803,371 shares (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ----------------------------------------------------------------------------------------------------------------------

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
3.3% (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

14. TYPE OF REPORTING PERSON
PN
- ----------------------------------------------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------------------------------------------
CUSIP NO. 03071L101 13D/A Page 3 of 10 Pages
- ---------------------------------------------------------------------------------------------------------------------

1. NAME OF REPORTING PERSON: North Star Partners II, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 61-1467034
- ---------------------------------------------------------------------------------------------------------------------

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
- ----------------------------------------------------------------------------------------------------------------------

3. SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------------------

4. SOURCE OF FUNDS
WC (SEE ITEM 3)
- ---------------------------------------------------------------------------------------------------------------------

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------------------------------------------------

6. CITIZENSHIP OR PLACE OF ORGANIZATION:
DELAWARE
- ---------------------------------------------------------------------------------------------------------------------

NUMBER 7. SOLE VOTING POWER:
OF SHARES 758,601 shares (See Item 5)
------------------------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
------------------------------------------------------------------
OWNED BY -0- (See Item 5)
------------------------------------------------------------------
EACH REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 758,601 shares (See Item 5)
------------------------------------------------------------------
WITH 10. SHARED DISPOSITIVE POWER
-0- (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
758,601 shares (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ----------------------------------------------------------------------------------------------------------------------

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
3.1% (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

14. TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------------------------------------------
CUSIP NO. 03071L101 13D/A Page 4 of 10 Pages
- ---------------------------------------------------------------------------------------------------------------------

1. NAME OF REPORTING PERSON: Circle T Explorer Master Limited
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 02-0744122
- --------------------------------------------------------------------------------------------------------------------

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
- ----------------------------------------------------------------------------------------------------------------------

3. SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------------------

4. SOURCE OF FUNDS
WC (SEE ITEM 3)
- ---------------------------------------------------------------------------------------------------------------------

6. CITIZENSHIP OR PLACE OF ORGANIZATION:
BERMUDA
- -------- -------------------------------------------------------------------------------------------------------------

NUMBER 7. SOLE VOTING POWER:
OF SHARES 74,850 shares (See Item 5)
------------------------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
------------------------------------------------------------------
OWNED BY -0- (See Item 5)
------------------------------------------------------------------
EACH REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 74,850 shares (See Item 5)
------------------------------------------------------------------
WITH 10. SHARED DISPOSITIVE POWER
-0- (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
74,850 shares (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ----------------------------------------------------------------------------------------------------------------------

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
0.3% (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

14. TYPE OF REPORTING PERSON
CO
- ----------------------------------------------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------------------------------------------
CUSIP NO. 03071L101 13D/A Page 5 of 10 Pages
- ---------------------------------------------------------------------------------------------------------------------

1. NAME OF REPORTING PERSON: NS Advisors, LLC
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 03-0439233
- ---------------------------------------------------------------------------------------------------------------------

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
- ----------------------------------------------------------------------------------------------------------------------

3. SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------------------

4. SOURCE OF FUNDS
AF (SEE ITEM 3)
- ---------------------------------------------------------------------------------------------------------------------

6. CITIZENSHIP OR PLACE OF ORGANIZATION:
CONNECTICUT
- -------- -------------------------------------------------------------------------------------------------------------

NUMBER 7. SOLE VOTING POWER:
OF SHARES 1,636,822(1) shares (See Item 5)
------------------------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
------------------------------------------------------------------
OWNED BY -0- (See Item 5)
------------------------------------------------------------------
EACH REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 1,636,822(1) shares (See Item 5)
------------------------------------------------------------------
WITH 10. SHARED DISPOSITIVE POWER
-0- (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
1,636,822(1) shares (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ----------------------------------------------------------------------------------------------------------------------

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
6.8% (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

14. TYPE OF REPORTING PERSON
OO
- ---------------------------------------------------------------------------------------------------------------------

(1) NS Advisors, LLC holds an indirect beneficial interest in these shares which
are directly beneficially owned by North Star Partners, L.P., North Star
Partners II, L.P. and Circle T Explorer Master Limited, by virtue of its
position as general partner of each of North Star Partners, L.P. and North Star
Partners II, L.P. and Portfolio Manager of Circle T Explorer Master Limited.

- ---------------------------------------------------------------------------------------------------------------------
CUSIP NO. 03071L101 13D/A Page 6 of 10 Pages
- ---------------------------------------------------------------------------------------------------------------------

1. NAME OF REPORTING PERSON: Andrew R. Jones
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: N/A
- --------------------------------------------------------------------------------------------------------------------

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
- ----------------------------------------------------------------------------------------------------------------------

3. SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------------------

4. SOURCE OF FUNDS
AF (SEE ITEM 3)
- ---------------------------------------------------------------------------------------------------------------------

6. CITIZENSHIP OR PLACE OF ORGANIZATION:
UNITED STATES OF AMERICA
- -------- -------------------------------------------------------------------------------------------------------------

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ----------------------------------------------------------------------------------------------------------------------

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
6.8% (See Item 5)
- ----------------------------------------------------------------------------------------------------------------------

14. TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------------------------------------------

(1) Andrew R. Jones holds an indirect beneficial interest in these shares which
are directly beneficially owned by North Star Partners, L.P., North Star
Partners II, L.P. and Circle T Explorer Master Limited by virtue of his position
as sole manager of NS Advisors, LLC.

Schedule 13D/A

Introductory Note

This statement (this "Statement") amends the Schedule 13D originally filed by North Star Partners, L.P.
("North Star"), North Star Partners II, L.P. ("North Star II"), NS Offshore, Ltd. ("Offshore"), Circle T Explorer
Master Limited ("Explorer"), NS Advisors, LLC ("Advisors") and Andrew R. Jones ("Jones") on September 12, 2005
(the "Original 13D") and amended by Amendment No. 1, filed on January 9, 2006 ("Amendment No. 1"). As reported
in Amendment No. 1, since the date of filing of the Original 13D, Offshore was wound up and dissolved and the
shares of common stock, $.001 par value (the "Common Stock") of AmeriVest Properties Inc., a Maryland corporation
(the "Issuer"), previously beneficially owned by Offshore were transferred to North Star. North Star, North Star
II, Explorer, Advisors and Jones are collectively referred to herein as the "North Star Group". Unless
specifically amended hereby, the disclosures set forth in the Original 13D and Amendment No. 1 shall remain
unchanged.

Item 4. Purposes of Transaction.

The response to Item 4 of the Original 13D and Amendment No. 1 is hereby amended by adding the following
paragraph to the end of such disclosure:

On February 13, 2006, the North Star Group delivered a letter to the Issuer expressing its concern over
the recent announcement regarding the Board of Directors' approval of a plan of liquidation. That letter is
attached hereto as Exhibit 2.

Item 5. Interests in Securities of the Issuer.

The response to Item 5 of Amendment No. 1 is hereby amended and restated in its entirety to read as
follows:

(a) - (c) As of February 13, 2006, the North Star Group beneficially owned in the aggregate, 1,636,822
shares of Common Stock, constituting approximately 6.8% of the outstanding shares of Common Stock (the percentage
of shares owned being based upon 24,111,000 shares outstanding on October 31, 2005, as set forth in the Issuer's
most recent report on Form 10-Q for the quarter ended September 30, 2005 filed with the Commission on November 4,
2005). The following table sets forth certain information with respect to shares of Common Stock beneficially
owned directly by the North Star Group members listed:
Approximate
Number of Percentage of
Name Shares Outstanding Shares
---- ------ ------------------
North Star* 803,371 3.3%
North Star II* 758,601 3.1%
Explorer* 74,850 0.3%

* Advisors and Mr. Jones each has an indirect beneficial ownership interest in these shares of Common
Stock.

Advisors is the sole general partner of North Star and North Star II and, accordingly, may be deemed to
be the indirect beneficial owner (as that term is defined under Rule 13d-3 promulgated pursuant to the Exchange
Act) of the shares of Common Stock that North Star and North Star II

beneficially own. Advisors, as the sole general partner of North Star and North Star II, has the sole
power to direct the voting and disposition of the shares of Common Stock that North Star and North Star II
beneficially own.

Advisors is the Portfolio Manager of Explorer and, accordingly, may be deemed to be the indirect
beneficial owner (as that term is defined under Rule 13d-3 promulgated pursuant to the Exchange Act) of the
shares of Common Stock that Explorer beneficially owns. Advisors, as the Portfolio Manager of Explorer, has the
sole power to direct the voting and disposition of the shares of Common Stock that Explorer beneficially owns.

Mr. Jones is the sole manager of Advisors and, accordingly, Mr. Jones may be deemed to be the indirect
beneficial owner (as that term is defined under Rule 13d-3 promulgated pursuant to the Exchange Act) of the
shares of Common Stock that Advisors may be deemed to beneficially own. Mr. Jones, as sole manager of Advisors,
has the sole power to direct the voting and disposition of the shares of Common Stock that Advisors may be deemed
to beneficially own.

Beneficial ownership of shares of Common Stock shown on the cover pages of and set forth elsewhere in
this 13D for each of the members of the North Star Group assumes that they have not formed a group for purposes
of Section 13(d)(3) under the Exchange Act, and Rule 13d-5(b)(1) promulgated thereunder. If the members of the
North Star Group were deemed to have formed a group for purposes of Section 13(d)(3) and Rule 13d-5(b)(1), the
group would be deemed to own beneficially (and may be deemed to have shared voting and dispositive power over)
1,636,822 shares of Common Stock, constituting approximately 6.8% of the outstanding shares of Common Stock (the
percentage of shares owned being based upon 24,111,000 shares outstanding on October 31, 2005, as set forth in
the Issuer's most recent report on Form 10-Q for the quarter ended September 30, 2005 filed with the Commission
on November 4, 2005).

The filing of this Schedule 13D and the inclusion of information herein with respect to Mr. Jones, shall
not be considered an admission that Mr. Jones, for the purpose of Section 13(d) of the Exchange Act, is the
beneficial owner of any shares in which he does not have a pecuniary interest.

To the knowledge of the North Star Group, except as described herein, none of the North Star Group, any
person in control (ultimately or otherwise) of the North Star Group, any general partner, executive officer or
director thereof, as applicable, beneficially owns any shares of Common Stock, and except as set forth in the
table below, there have been no transactions in shares of Common Stock effected during the past 60 days by the
North Star Group, any person in control of the North Star Group (ultimately or otherwise), or any general
partner, executive officer or director thereof, as applicable; provided, however, certain investment banking
affiliates of the North Star Group may beneficially own shares of Common Stock, including shares that may be held
in discretionary or advisory accounts with the North Star Group; and the North Star Group, directly or in
connection with such discretionary or advisory accounts, may acquire, hold, vote or dispose of Common Stock,
including transactions that may have occurred in the past 60 days.

The North Star Group has made purchases of shares of Common Stock during the past 60 days as follows:

Name Date Number of Shares Price Per Share
- ---- ---- ---------------- ---------------
North Star December 30, 2005 48,374 $4.15

Name Date Number of Shares Price Per Share
- ---- ---- ---------------- ---------------
North Star II December 30, 2005 50,500 $4.15
North Star II January 5, 2006 43,000 $4.23
North Star II January 10, 2006 23,000 $4.37
North Star II January 11, 2006 5,700 $4.38

Explorer December 30, 2005 7,500 $4.15

In addition to the foregoing, North Star acquired 144,563 shares of Common Stock from Offshore on
January 3, 2006 at an average price per share of $4.18.

(d) No person, other than each of the members of the North Star Group referred to as the direct
beneficial owner of the shares of Common Stock set forth in this response to Item 5, has the right to receive or
the power to direct the receipt of dividends from, or the proceeds from the sale of, such shares of Common Stock.

(e) Not applicable.

Item 7. Material to be Filed as Exhibits.

The response to Item 7 of the Original 13D and Amendment No. 1 is hereby amended by adding thereto the
following:

Exhibit 2 Letter to the Board of Directors, dated February 13, 2006.

SIGNATURE

After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the
information set forth in this Schedule 13D is true, complete and correct.

Dated: February 13, 2006
NORTH STAR PARTNERS, L.P.
By: NS Advisors, LLC
General Partner

By: /s/ Andrew R. Jones
----------------------------------------
Andrew R. Jones, Managing Member

NORTH STAR PARTNERS II, L.P.
By: NS Advisors, LLC
General Partner

By: /s/ Andrew R. Jones
----------------------------------------
Andrew R. Jones, Managing Member

CIRCLE T EXPLORER MASTER LIMITED

By: NS Advisors, LLC
Portfolio Manager

By: /s/ Andrew R. Jones
----------------------------------------
Andrew R. Jones, Managing Member

NS ADVISORS, LLC

By: /s/ Andrew R. Jones
----------------------------------------
Andrew R. Jones, Managing Member

/s/ Andrew R. Jones
----------------------------------------
Andrew R. Jones, Individually

EX-2 2 e1157836.htm

[North Star Partners Letterhead]

February 13, 2006

Mr. Charles Knight

President and CEO

AmeriVest Properties Inc.

1780 South Bellaire Street

Suite 100

Denver, CO 80222

Dear Mr. Knight:

North Star Partners, on behalf of its clients, owns 6.8% of the outstanding shares of AmeriVest Properties, Inc. (AMV). We are writing to express our concern over the recent announcement regarding the Board’s approval of a plan of liquidation. 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.

For the liquidating distributions to be as low as $4.20/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. However based upon the experience in selling the last five properties, we are concerned that closing costs and adjustments will eat up a significant amount of shareholders’ already impaired capital. By our calculations, closing costs/adjustments have averaged over 4% of the announced sale prices, which together with AMV’s leverage has resulted in a meaningful amount of per share value leakage. The company’s refusal to disclose the make up of these costs makes us suspicious as to whether they might be better managed.

In addition to the high closing costs, we remain extremely concerned by the high level of corporate overhead. We have tried repeatedly to discuss this with AMV’s lead director, Mr. Holman, but he has been unwilling to return our calls. In today’s environment it is surprising that the company would designate a lead director who is unwilling to communicate with a significant shareholder. Thursday’s press release fails to say anything about expected costs to wind up the company and here again we are afraid that we will suffer more value leakage. It is our view that there should be no special payments made to any company employees or directors in connection with their final terms of service. Liquidating AMV should be a simple process and there certainly is not a success to be celebrated here with success bonuses. We think it is imperative that ALL costs be meticulously controlled during the liquidation but have not seen evidence that this will be the case.

The expected time frame for selling a portfolio of 12 office buildings in the midst of a very healthy commercial real estate market is also disappointing. How can it possibly take anywhere close to two years? Clearly the timing of distributions is also an important element of the final shareholder value and we are discouraged with the lack of urgency shown to date.

As a result of our concerns, we are hereby asking the Board of Directors to appoint an independent shareholder to the Board to help oversee the liquidation. An independent owner, with no stake in the management of the company or its past decisions, would clearly be the best advocate of maximizing the present value of distributions to the shareholders. With the stock down nearly 40% in the last twelve months, it would be prudent for the Board to have an independent observer watch over the winding up of the remaining assets to give shareholders additional assurance that it is done as quickly and efficiently as possible. North Star Partners would be happy to serve in that role or would be open to discussing with other large shareholders who they might feel is appropriate. We look forward to hearing from you and the Board regarding our request.

Sincerely,

/s/ Andrew R. Jones

Andrew R. Jones, CFA

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