NOTES PAYABLE

The following table summarizes the terms and amounts of the Company’s notes payable at March 31, 2014 and December 31, 2013 ($ in thousands):



Description	Interest Rate		Maturity	March 31, 2014		December 31, 2013
Post Oak Central mortgage note	4.26	%	2020	$	187,522	$	188,310
The American Cancer Society Center mortgage note	6.45	%	2017	132,287		132,714
Promenade mortgage note	4.27	%	2022	112,927		113,573
191 Peachtree Tower mortgage note (interest only until May 1, 2016)	3.35	%	2018	100,000		100,000
Meridian Mark Plaza mortgage note	6.00	%	2020	25,714		25,813
The Points at Waterview mortgage note	5.66	%	2016	15,007		15,139
Mahan Village construction facility	1.80	%	2014	13,985		14,470
Credit Facility, unsecured	1.65	%	2016	—		40,075
				$	587,442	$	630,094

Fair Value

At March 31, 2014 and December 31, 2013, the aggregate estimated fair values of the Company's notes payable were $610.2 million and $654.1 million, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at those respective dates. The estimate of the current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in the Financial Accounting Standards Board's Accounting Standards Codification ("ASC") 820, Fair Value Measurement, as the Company utilizes market rates for similar type loans from third party brokers.

Other Information

For the three months ended March 31, 2014 and 2013, interest expense was as follows (in thousands):



	Three Months Ended March 31,
	2014			2013
Total interest incurred	$	7,540		$	5,036
Interest capitalized	(373		)	(101		)
Total interest expense	$	7,167		$	4,935

The real estate and other assets of The American Cancer Society Center (the “ACS Center”) are restricted under the ACS Center loan agreement in that they are not available to settle debts of the Company. However, provided that the ACS Center loan has not incurred any uncured event of default, as defined in the loan agreement, the cash flows from the ACS Center, after payments of debt service, operating expenses and reserves, are available for distribution to the Company.