Investment in Unconsolidated Joint Ventures

In addition to the 45 office and parking properties included in the consolidated financial statements, the Company has also invested in three unconsolidated joint ventures that own seven office and parking properties as of September 30, 2014. The three investments in unconsolidated joint ventures are accounted for under the equity method of accounting.

Information relating to the unconsolidated joint ventures is summarized below (in thousands):



Joint Venture Entity	Location	Parkway's Ownership%	Number of Properties	Investment Balance at September 30, 2014		Investment Balance at December 31, 2013
PKY/CalSTRS Austin, LLC ("Austin Joint Venture") (1)	Austin, TX	40.00%	5	$	74,843	$	93,171
US Airways Building Tenancy in Common ("US Airways Building")	Phoenix, AZ	74.58%	1	40,065		42,501
7000 Central Park JV LLC ("7000 Central Park")	Atlanta, GA	40.00%	1	15,603		15,490
			7	$	130,511	$	151,162

(1) The Austin Joint Venture owns the following properties: San Jacinto Center; Frost Bank Tower; One Congress Plaza; One American Center; and 300 West 6th Street.

The following table summarizes the combined balance sheet of the unconsolidated joint ventures at September 30, 2014 (in thousands):



	US Airways Building		7000 Central Park		Austin Joint Venture		Total
Cash	$	148	$	522	$	12,963	$	13,633
Restricted cash	—		200		203		403
Real estate, net	48,018		48,659		711,191		807,868
Intangible assets, net	5,214		5,262		54,118		64,594
Other assets	710		1,464		20,879		23,053
Total assets	$	54,090	$	56,107	$	799,354	$	909,551

Mortgage debt	$	13,525	$	30,000	$	627,583	$	671,108
Other liabilities	372		1,161		49,031		50,564
Partners' equity	40,193		24,946		122,740		187,879
Total liabilities and partners' equity	$	54,090	$	56,107	$	799,354	$	909,551

The following table summarizes the combined balance sheet of the unconsolidated joint ventures at December 31, 2013 (in thousands):



	US Airways Building		7000 Central Park		Austin Joint Venture		Total
Cash	$	2,471	$	179	$	9,432	$	12,082
Restricted cash	—		—		5,846		5,846
Real estate, net	49,176		49,852		723,563		822,591
Intangible assets, net	2,809		4,832		55,593		63,234
Other assets	3,145		4,147		14,638		21,930
Total assets	$	57,601	$	59,010	$	809,072	$	925,683

Mortgage debt	$	13,777	$	30,000	$	628,066	$	671,843
Other liabilities	1,143		1,687		55,552		58,382
Partners' equity	42,681		27,323		125,454		195,458
Total liabilities and partners' equity	$	57,601	$	59,010	$	809,072	$	925,683

The following table summarizes the combined statement of operations of the unconsolidated joint ventures for the three months ended September 30, 2014 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture			Total
Revenues	$	1,126	$	1,803		$	25,863		$	28,792
Operating expenses	—		944			10,912			11,856
Depreciation and amortization	522		1,023			9,056			10,601
Operating income (loss)	604		(164		)	5,895			6,335
Interest expense	105		150			9,665			9,920
Loan cost amortization	—		35			(161		)	(126		)
Other expenses	—		—			—			—
Net income (loss)	$	499	$	(349	)	$	(3,609	)	$	(3,459	)

The following table summarizes the combined statement of operations of the unconsolidated joint ventures for the nine months ended September 30, 2014 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture			Total
Revenues	$	3,378	$	5,572		$	74,441		$	83,391
Operating expenses	—		2,817			30,576			33,393
Depreciation and amortization	1,566		3,316			28,220			33,102
Operating income (loss)	1,812		(561		)	15,645			16,896
Interest expense	312		213			28,729			29,254
Loan cost amortization	—		141			(483		)	(342		)
Other expenses	—		—			1			1
Net income (loss)	$	1,500	$	(915	)	$	(12,602	)	$	(12,017	)

The following table summarizes the combined statement of operations of the unconsolidated joint ventures for the three and nine months ended September 30, 2013 (in thousands):



	US Airways Building		7000 Central Park		Austin Joint Venture		Total
Revenues	$	299	$	—	$	—	$	299
Operating expenses	—		—		—		—
Depreciation and amortization	193		—		—		193
Operating income	106		—		—		106
Interest expense	—		—		—		—
Loan cost amortization	—		—		—		—
Other expenses	—		—		—		—
Net income	$	106	$	—	$	—	$	106

With respect to the Austin Joint Venture, the Company's share of partners' equity is $49.1 million and the Company's excess investment is $25.7 million at September 30, 2014. "Excess investment" represents the unamortized difference of the Company's investment over the Company's share of the equity in the underlying net assets of the joint venture acquired and is allocated on a fair value basis primarily to investment property, lease related intangibles and debt premiums. The Company amortizes excess investment over the life of the related depreciable components of investment property, typically no greater than 40 years, the terms of the applicable leases and the applicable debt maturity, respectively. The amortization is included in the reported income (loss) from unconsolidated joint ventures.