Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note E - Discontinued Operations

All current and prior period income from the following office property dispositions and property held for sale is included in discontinued operations for the three months and nine months ended September 30, 2011 and 2010 (in thousands).

Office Property	Location	Square Feet	Date of Sale		Net Sales Price		Net Book Value of Real Estate		Gain on Sale
One Park Ten	Houston, TX	163	04/15/2010	$	14,924	$	6,406	$	8,518
2010 Dispositions		163		$	14,924	$	6,406	$	8,518
233 North Michigan	Chicago, IL	1,070	05/11/2011	$	156,546	$	152,254	$	4,292
Greenbrier I & II	Hampton Roads, VA	172	07/19/2011		16,275		15,070		1,205
Glen Forest	Richmond, VA	81	08/16/2011		8,950		7,880		1,070
Tower at 1301 Gervais	Columbia, SC	298	09/08/2011		18,421		18,421		-
2011 Dispositions		1,621		$	200,192	$	193,625	$	6,567
Property Held For Sale
111 East Wacker	Chicago, IL	1,013	-	$	-	$	-	$	-

On May 11, 2011, the Company sold 233 North Michigan, a 1.1 million square foot office building in Chicago, Illinois, for gross proceeds of $162.2 million and recorded a gain on the sale of $4.3 million.  Accordingly, income from 233 North Michigan has been classified as discontinued operations for all current and prior periods presented.

On July 19, 2011, Parkway sold Greenbrier  Towers I & II for gross proceeds of $16.7 million and recorded a gain on the sale of $1.2 million.  The two office buildings total 172,000 square feet and are located in Hampton Roads, Virginia.  Accordingly, income from Greenbrier Towers I & II has been classified as discontinued operations for all current and prior periods presented.

On August 16, 2011, Parkway sold Glen Forest, a 81,000 square foot office building in Richmond, Virginia, for gross proceeds of $9.3 million and recorded a gain on the sale of $1.1 million.  Accordingly, income from Glen Forest has been classified as discontinued operations for all current and prior periods presented.

On September 8, 2011, Parkway sold Tower at 1301 Gervais, a 298,000 square foot office building in Columbia, South Carolina, for gross proceeds of $19.5 million and recorded an impairment loss of $1.0 million.  Accordingly, income from Tower at 1301 Gervais has been classified as discontinued operations for all current and prior periods presented. A non-cash impairment loss totaling $2.7 million was recognized during the nine months ended September 30, 2011, with respect to this property.

In the third quarter of 2011, Parkway classified 111 East Wacker, a 1.0 million square foot office building in Chicago, Illinois, as held for sale.  Accordingly, income from 111 East Wacker has been classified as discontinued operations for all current and prior periods presented.  In accordance with GAAP, a non-cash  impairment loss of $18.8 million was recognized during the third quarter of 2011, with respect to this property.

The major classes of assets and liabilities classified as held for sale for 111 East Wacker at September 30, 2011 are as follows (in thousands):

	September 30
	2011
Balance Sheet:
Investment property	$	168,613
Accumulated depreciation		(33,650)
Office property held for sale		134,963
Rents receivable and other assets		27,472
Intangible assets, net		4,511
Other assets held for sale		31,983
Total assets held for sale	$	166,946
Mortgage notes payable	$	148,272
Accounts payable and other liabilities		17,068
Total liabilities held for sale	$	165,340

The amount of revenues and expenses for these six office properties reported in discontinued operations for the three months and nine months ended September 30, 2011 and 2010 is as follows (in thousands):

		Three Months Ended September 30				Nine Months Ended September 30
		2011		2010		2011		2010
Income statement:
Revenues
Income from office and parking properties	$	9,042	$	16,472	$	41,218	$	56,217
		9,042		16,472		41,218		56,217
Expenses
Office and parking properties:
Operating expense		3,316		7,715		18,016		24,863
Interest expense		2,389		3,504		8,358		10,792
Depreciation and amortization		6,203		6,301		19,787		19,118
Impairment loss		19,767		-		21,467		-
		31,675		17,520		67,628		54,773
Income (loss) from discontinued operations		(22,633)		(1,048)		(26,410)		1,444
Gain on sale of real estate from discontinued operations		2,275		-		6,567		8,518
Total discontinued operations	$	(20,358)	$	(1,048)	$	(19,843)	$	9,962