Note D – Acquisitions

On January 17, 2013, the Company purchased Tower Place 200, a 258,000 square foot office tower located in the Buckhead submarket of Atlanta, Georgia, for a gross purchase price of $56.3 million. The purchase of Tower Place 200 was financed with borrowings under the Company's senior unsecured revolving credit facility. The building is unencumbered by debt and the Company does not plan to place secured financing on the property at this time.

On March 7, 2013, the Company purchased two office complexes totaling 1.0 million square feet located in the Deerwood submarket of Jacksonville, Florida (the "Deerwood Portfolio") for a gross purchase price of $130.0 million. The purchase of these properties was financed with a mortgage loan secured by the properties in the aggregate amount of $84.5 million and borrowings under the Company's senior unsecured revolving credit facility. The mortgage loan has a maturity date of April 1, 2023 and a fixed interest rate of 3.9%.

On March 15, 2013, the Company entered into a definitive agreement to acquire approximately 75% of the interest in the US Airways Building, a 225,000 square foot office property located in the Tempe submarket of Phoenix, Arizona, for a purchase price of $41.8 million. The building is currently encumbered by an approximate $18.0 million mortgage, which the Company intends to refinance at closing. This nine-story Class A office building is adjacent to Parkway's Hayden Ferry Lakeside and Tempe Gateway assets and shares a parking garage with Tempe Gateway. The property is the headquarters for US Airways, which has leased 100% of the building through April 2024. US Airways has a termination option on December 31, 2016 or December 31, 2021 with 12 months prior notice. US Airways is also the owner of the remaining approximate 25% in the building. Closing is expected to occur by the end of the second quarter 2013, subject to customary closing conditions.

On March 25, 2013, the Company purchased its co-investor's 70% interest in three office properties totaling 788,000 square feet located in the Westshore submarket of Tampa, Florida ("Tampa Fund II Assets"). The Tampa Fund II Assets were owned by Parkway Properties Office Fund II, L.P. ("Fund II"). The Company's purchase price for its co-investor's 70% interest in the Tampa Fund II Assets was $97.5 million. Simultaneously with closing, the Company assumed $40.7 million of existing mortgage indebtedness that is secured by the properties, which represents its co-investor's 70% share of the approximately $58.1 million of existing mortgage indebtedness. The three office properties include Corporate Center IV at International Plaza, Cypress Center I, II and III, and The Pointe. The Tampa Fund II Assets' office properties and associated mortage loans were previously included in the Company's consolidated balance sheets and statements of operations and comprehensive income (loss). Therefore, the Company's purchase of its co-investor's share in these office properties will not impact the Company's overall financial position.

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 Tower Place 200 and the Deerwood Portfolio is as follows (in thousands, except weighted average life):

	Amount			Weighted Average Life
Land	$	31,337			N/A
Buildings and garages		121,369			40
Tenant improvements		13,434			5
Lease commissions		6,056			4
Lease in place value		15,862			4
Above market leases		2,936			4
Below market leases		(5,735	)		7

The allocation of purchase price for Tower Place 200 and the Deerwood Portfolio was preliminary at March 31, 2013 due to the timing of the acquisitions.

The unaudited pro forma effect on the Company's results of operations for the purchase of Tower Place 200, the Deerwood Portfolio and the Tampa Fund II assets as if the purchase had occurred on January 1, 2012 is as follows (in thousands, except per share data):

	Three Months Ended
	March 31
	2013			2012
Revenues	$	75,820		$	56,478
Net income (loss) attributable to common stockholders	$	(4,307	)	$	2,430
Basic net income (loss) attributable to common stockholders	$	(0.08	)	$	0.11
Diluted net income (loss) attributable to common stockholders	$	(0.08	)	$	0.11

On April 26, 2013, the Company entered into a purchase and sale agreement to acquire Lincoln Place, a 140,000 square foot office building located in the South Beach submarket of Miami, Florida. Lincoln Place is comprised of 111,000 square feet of office space and 29,000 square feet of retail space on the ground floor, with a five-story garage adjacent to the property. The property is currently 100% leased to LNR Corporation through June 2021 with no renewal or early termination option. Parkway is under contract to acquire Lincoln Place in exchange for the assumption of the existing secured first mortgage, which has a current outstanding balance of approximately $49.6 million, a fixed interest rate of 5.9% and a maturity date of June 11, 2016, and the issuance of 900,000 shares of operating partnership units. Based on Parkway's closing stock price of $18.20 per share on May 3, 2013, the implied purchase price would be approximately $66.0 million. Closing is expected to occur by the end of the third quarter 2013, subject to customary closing conditions.

For details regarding dispositions during the three months ended March 31, 2013, please see Note E – Discontinued Operations.