Note D – Acquisitions

On January 11, 2012, Parkway Properties Office Fund II, LP ("Fund II") purchased The Pointe, a 252,000 square foot Class A office building in the Westshore submarket of Tampa, Florida. The gross purchase price for The Pointe was $46.9 million and Parkway's ownership share is 30%. Parkway's equity contribution of $7.0 million was funded through availability under the Company's senior unsecured revolving credit facility.

On February 10, 2012, Fund II purchased Hayden Ferry Lakeside II ("Hayden Ferry II"), a 300,000 square foot Class A+ office building located in the Tempe submarket of Phoenix, and directly adjacent to Hayden Ferry Lakeside I ("Hayden Ferry I"), which was purchased by Fund II in the second quarter of 2011.

The gross purchase price was $86.0 million and Parkway's ownership share is 30%. Parkway's equity contribution of $10.8 million was initially funded through availability under the Company's existing senior unsecured revolving credit facility. This investment completed the investment period of Fund II.

On June 6, 2012, Parkway purchased Hearst Tower, a 972,000 square foot office tower located in the central business district in Charlotte, North Carolina. The gross purchase price was $250.0 million. The purchase of Hearst Tower was financed with proceeds received from the investment in the Company by TPG VI Pantera Holdings, L.P. (together with its affiliates, ("TPG")), combined with borrowings on the Company's credit facility. For more information on TPG's investment see "Note M – TPG Securities Purchase Agreement".

On August 31, 2012, Parkway purchased a 2,500 space parking garage, a 21,000 square foot office building and a vacant parcel of developable land (collectively the "Hayden Ferry Garage"), all adjacent to Parkway's currently owned Hayden Ferry I and Hayden Ferry II assets in Tempe, Arizona. The gross purchase price was $18.2 million on behalf of Fund II. Fund II increased its investment capacity to pursue the purchase, and Parkway's share in this investment is 30%. Parkway's equity contribution of $5.5 million was funded using the Company's revolving credit facility.

The allocation of purchase price related to intangible assets and liabilities and weighted average amortization period (in years) for each class of asset or liability for The Pointe, Hayden Ferry II, and Hearst Tower is as follows (in thousands, except weighted average life):

	Amount			Weighted Average Life
Land	$	21,969			N/	A
Buildings & Garages		309,329			40
Tenant improvements		26,631			6
Lease commissions		10,141			6
Lease in place value		27,653			6
Above market leases		4,944			4
Below market leases		(3,729	)		7
Other intangibles		3,001			3

The allocation of purchase price for Hayden Ferry Garage was preliminary at September 30, 2012.

The unaudited pro forma effect on the Company's results of operations for the purchase of The Pointe, Hayden Ferry II, Hearst Tower, and Hayden Ferry Garage as if the purchase had occurred on January 1, 2011 is as follows (in thousands, except per share data):

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2012			2011			2012		2011
Revenues	$	59,757		$	58,986		$	179,774	$	146,604
Net income (loss) attributable to common stockholders	$	(568	)	$	(53,510	)	$	3,147	$	(71,482	)
Basic net income (loss) attributable to common stockholders	$	(0.02	)	$	(2.49	)	$	0.15	$	(3.33	)
Diluted net income (loss) attributable to common stockholders	$	(0.02	)	$	(2.49	)	$	0.15	$	(3.33	)

On October 5, 2012, Parkway entered into a purchase and sale agreement to acquire Westshore Corporate Center, a 170,000 square foot office property located in the Westshore submarket of Tampa, Florida, for a net purchase price of $22.5 million. Parkway plans to assume the in-place first mortgage secured by the property, which has a current outstanding balance of approximately $14.5 million with a fixed interest rate of 5.8% and a maturity date of May 1, 2015. Westshore Corporate Center is currently managed by Parkway Realty Services and was formerly part of the Eola Capital LLC ("Eola") portfolio before Eola merged with Parkway in May 2011. Pursuant to the agreement formed between Parkway and the former Eola principals in December 2011, 100% of any proceeds received by the former principals will be granted to Parkway, and therefore Parkway will only be required to pay a purchase price of $22.5 million. Closing is expected to occur by the end of the fourth quarter 2012 and is subject to lender approval of the assumption of the existing mortgage secured by the property and other customary closing conditions. Parkway expects to fund this investment using excess cash and borrowings from its revolving credit facility.

On October 31, 2012, the Company entered into a purchase and sale agreement to acquire NASCAR Plaza, a 390,000 square foot office tower located in the central business district (CBD) of Charlotte, North Carolina, for a purchase price of approximately $100 million. Parkway plans to assume the first mortgage secured by the property, which has a current outstanding balance of approximately $42.3 million with a current interest rate of 4.7% and a maturity date of March 30, 2016; however, Parkway intends to amend and restate the loan upon assumption to current market terms. Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions. Parkway expects to fund this investment using excess cash and borrowings from its revolving credit facility.

For details regarding dispositions during the nine months ended September 30, 2012, and to date through November 1, 2012, please see Note E – Discontinued Operations.