Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

All current and prior period income from the following office property dispositions and properties held for sale at December 31, 2013 is included in discontinued operations for the three and nine months ended September 30, 2014 and 2013 (in thousands).

Office Property	Location	Date of Sale	Net Sales Price		Net Book Value of Real Estate		Gain on Sale
2013 Dispositions:
Atrium at Stoneridge	Columbia, SC	03/20/2013	$	2,966	$	2,424	$	542
Waterstone	Atlanta, GA	07/10/2013	3,247		3,207		40
Meridian	Atlanta, GA	07/10/2013	6,615		6,560		55
Bank of America Plaza	Nashville, TN	07/17/2013	41,093		29,643		11,450
Lakewood II	Atlanta, GA	10/31/2013	10,240		4,403		5,837
Carmel Crossing	Charlotte, NC	11/08/2013	36,673		22,104		14,569
			$	100,834	$	68,341	$	32,493	(1)
2014 Dispositions:
Woodbranch Building	Houston, TX	01/17/2014	$	14,424	$	4,450	$	9,974
Mesa Corporate Center	Phoenix, AZ	01/31/2014	12,257		11,768		489
			$	26,681	$	16,218	$	10,463

(1) Total gain on the sale of real estate in discontinued operations recognized for the year ended December 31, 2013 was $32.5 million, of which $18.2 million was the Company's proportionate share.

On January 17, 2014, the Company sold the Woodbranch Building, an office property located in Houston, Texas, for a gross sale price of $15.0 million. The Company received approximately $13.9 million in net proceeds from the sale, which was used to fund subsequent acquisitions. The Company recorded a gain of approximately $10.0 million during the nine months ended September 30, 2014.

On January 31, 2014, the Company sold Mesa Corporate Center, an office property located in Phoenix, Arizona, for a gross sale price of $13.2 million. The Company received approximately $12.1 million in net proceeds from the sale, which was used to fund subsequent acquisitions. The Company recorded a gain of approximately $489,000 during the nine months ended September 30, 2014.

In accordance with the Company's adoption of ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," effective January 1, 2014, the sale of the Schlumberger Building was not included in discontinued operations as it was not previously classified as held for sale as of December 31, 2013 and does not represent a strategic shift in the Company's operations.

The amount of revenues and expenses for the office and parking properties reported in discontinued operations for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Statement of Operations:
Revenues
Income from office and parking properties	$	52		$	3,196		$	99		$	13,418
Expenses
Office and parking properties:
Operating expense	341			1,444			364			6,128
Depreciation and amortization	—			914			116			4,236
Impairment loss on real estate	—			5,600			—			10,200
Management company expense	—			(41		)	—			(39		)
Interest expense	—			142			—			425
Total expenses	341			8,059			480			20,950
Loss from discontinued operations	(289		)	(4,863		)	(381		)	(7,532		)
Gain on sale of real estate from discontinued operations	—			11,545			10,463			12,087
Total discontinued operations per consolidated statements of operations and comprehensive income (loss)	(289		)	6,682			10,082			4,555
Net (income) loss attributable to noncontrolling interest from discontinued operations	111			(266		)	(406		)	(532		)
Total discontinued operations-Company's share	$	(178	)	$	6,416		$	9,676		$	4,023