PROPERTY TRANSACTIONS

Discontinued Operations

Accounting rules require that the historical operating results of held-for-sale or sold assets which meet certain accounting rules be included in a separate section, discontinued operations, in the statements of comprehensive income for all periods presented. If the asset is sold, the related gain or loss on sale is also included in discontinued operations. The following properties which were held-for-sale in 2012 or sold in 2012, 2011 and 2010 met the criteria for discontinued operations presentation ($ in thousands):



Property	Property Type	Location	Square Feet	Sales Price
2012:
The Avenue Forsyth	Retail	Atlanta, GA	524,000	$	119,000
The Avenue Collierville	Retail	Memphis, TN	511,000	55,000
The Avenue Webb Gin	Retail	Atlanta, GA	322,000	59,600
Galleria 75	Office	Atlanta, GA	111,000	9,200
Cosmopolitan Center	Office	Atlanta, GA	51,000	7,000
Inhibitex	Office	Atlanta, GA	51,000	Held-for-sale
2011:
King Mill Distribution Park — Building 3	Industrial	Atlanta, GA	796,000	28,300
Lakeside Ranch Business Park — Building 20	Industrial	Dallas, TX	749,000	28,400
Jefferson Mill Business Park — Building A	Industrial	Atlanta, GA	459,000	22,000
One Georgia Center	Office	Atlanta, GA	376,000	48,600
2010:
San Jose MarketCenter	Retail	San Jose, CA	213,000	85,000
8995 Westside Parkway	Office	Atlanta, GA	51,000	3,200

In addition, the Company sold its third party management and leasing business to Cushman & Wakefield in 2012. Under the terms of the agreement, the Company has the potential to receive up to $15.4 million in gross sales proceeds, of which approximately 63.5% was received at closing. The final purchase price is subject to working capital adjustments, an earn out based on the performance of the contributed management and leasing contracts, and the potential contribution of additional management and/or leasing contracts, all of which the Company expects to be substantially resolved by October 1, 2013. The Company recognized a gain on this transaction of $7.5 million and will recognize additional gains if and when additional consideration is earned. As a result of this sale, the operations of the Company's third party management and leasing business are presented as discontinued operations on the accompanying statements of comprehensive income for each of the periods presented.

The following table details the components of income (loss) from discontinued operations for the years ended December 31, 2012, 2011 and 2010 (in thousands):



	2012			2011			2010
Rental property revenues	$	22,517		$	41,092		$	46,613
Third party management and leasing revenues	16,364			19,359			18,976
Other income	3,526			179			4,814
Rental property expenses	(6,746		)	(15,480		)	(16,824		)
Third party management and leasing expenses	(13,679		)	(16,584		)	(17,393		)
Depreciation and amortization	(9,344		)	(19,481		)	(23,268		)
Impairment losses	(13,790		)	(7,632		)	—
Other	(49		)	(63		)	(65		)
Income (loss) from discontinued operations	$	(1,201	)	$	1,390		$	12,853

Gains (losses) related on sales of discontinued operations are as follows for the years ended December 31, 2012, 2011 and 2010 (in thousands):



	2012			2011			2010
Third party management and leasing business	7,459			—			—
The Avenue Forsyth	4,508			—			(10		)
The Avenue Webb Gin	3,590			—			—
Cosmopolitan Center	2,064			—			—
Galleria 75	569			—			—
The Avenue Collierville	73			—			—
King Mill Distribution Park — Building 3	307			4,977			—
One Georgia Center	(104		)	2,805			—
Lakeside Ranch Business Park — Building 20	(59		)	1,121			—
Jefferson Mill Business Park — Building A	—			(394		)	—
San Jose MarketCenter	—			10			6,572
8995 Westside Parkway	—			—			654
Gain on sale of discontinued operations, net	$	18,407		$	8,519		$	7,216

Purchases of Investment Property

In 2012, the Company purchased 2100 Ross Avenue, a 844,000 square foot Class-A office building in the Arts District submarket of Dallas, Texas, and paid cash of $59.2 million. In addition, the Company assumed $4.2 million in liabilities associated with the building including tenant improvement liabilities, property tax liabilities and deferred revenue. In accordance with applicable accounting rules, the Company included these assumed liabilities in the purchase price of the asset. The Company allocated the purchase price among the assets and liabilities acquired based on their respective fair values. The Company incurred approximately $408,000 in acquisition costs related to the purchase, which were recorded in other expense in the statements of comprehensive income.

In 2011, the Company purchased Promenade, a 775,000 square foot office building in the midtown submarket of Atlanta, Georgia, for a cash purchase price of $134.7 million. The Company allocated the purchase price among the assets and liabilities acquired based on their respective fair values. The Company incurred approximately $292,000 in acquisition costs related to the purchase, which are recorded in other expense on the statements of comprehensive income.

The following table summarizes the fair value of the assets and liabilities acquired (in thousands):



	2012			2011
Land and improvements	$	5,987		$	13,439
Building	36,705			94,190
Tenant Improvements and FF&E	9,034			8,600
Tangible assets	51,726			116,229
Intangible Assets:
Above-market leases	3,267			3,991
In-place leases	8,888			16,172
Total intangible assets	12,155			20,163
Intangible Liabilities:
Below-market leases	(436		)	(1,659		)
Total net assets acquired	$	63,445		$	134,733

See note 11 for a schedule of the timing of amortization of the intangible assets and liabilities and the weighted average amortization periods.

Subsequent Events

In February 2013, consistent with the Company's strategy, the Company purchased the remaining 80% interest in MSREF/T200 for $53.4 million in a transaction that valued the property at $164.0 million and repaid the mortgage loan secured by the Terminus 200 building in the amount of $74.5 million. Subsequently, the Company contributed the Terminus 200 building and the Terminus 100 building, encumbered by its existing mortgage loan in the amount of $135.8 million, to an entity and sold 50% of the entity to JP Morgan for $112.1 million. This transaction valued the Terminus 100 building at $209.2 million. The Company then purchased Post Oak Central, a 1.3 million square foot, Class A office building in the Galleria district of Houston, Texas for $232.6 million from an affiliate of JP Morgan. The Company expects to recognize a gain on the acquisition of the remaining interest in MSREF/T200 equal to the difference between the value of its interest in MSREF/T200, as determined by the transaction, less the carrying amount of its investment immediately prior to the purchase. The Company also expects to record a gain on the sale of its 50% interest in Terminus 100.