Investment in Office Properties and Parking Properties

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Investment in Office and Parking Properties

Investment in Office and Parking Properties

Included in investment in office and parking properties at March 31, 2015 are 48 office and parking properties located in seven states.

2015 Acquisitions

On January 8, 2015, the Company acquired One Buckhead Plaza, an office building located in the Buckhead submarket of Atlanta, Georgia, for a gross purchase price of $157.0 million.

The aggregate preliminary purchase price allocation related to tangible and intangible assets and liabilities based on Level 2 and Level 3 inputs for One Buckhead Plaza is as follows (in thousands):

	Amount
Land	$	20,600
Buildings	124,634
Tenant improvements	5,562
Lease commissions	5,326
Lease in place value	7,143
Above market leases	1,764
Below market leases	(8,029		)

The allocation of the purchase price was based on preliminary estimates and is subject to change within the measurement period as valuations are finalized.

The Company's unaudited pro forma results of operations after giving effect to the purchase of One Buckhead Plaza as if the purchase had occurred on January 1, 2014 is as follows (in thousands, except per share data):

	Three Months Ended March 31,
	2015		2014
Revenues	$	120,980	$	108,989
Net income attributable to common stockholders	$	7,381	$	11,246
Basic net income attributable to common stockholders per share	$	0.07	$	0.12
Diluted net income attributable to common stockholders per share	$	0.06	$	0.11

Summary of Dispositions

On January 15, 2015, the Company sold the Raymond James Tower, an office property located in Memphis, Tennessee, for a gross sale price of $19.3 million, providing $8.9 million in buyer credits, and recognized a loss of approximately $47,000 in continuing operations during the three months ended March 31, 2015.

On February 4, 2015, the Company sold the Honeywell Building, an office property located in Houston, Texas, for a gross sale price of $28.0 million, and recognized a gain of approximately $14.3 million in continuing operations during the three months ended March 31, 2015.

Properties Held for Sale

On March 6, 2015, Parkway Properties Office Fund II L.P. ("Fund II") entered into a purchase and sale agreement to sell Two Ravinia Drive, an office property located in Atlanta, Georgia, for a gross sale price of $78.0 million. As of March 31, 2015, the Company recorded assets held for sale and liabilities held for sale related to this property of $48.4 million and $25.3 million, respectively. The Company sold the property on April 8, 2015 and expects to record a gain on sale of real estate during the second quarter of 2015. Simultaneously with the closing of the sale, Fund II paid in full the remaining outstanding mortgage balance totaling $22.1 million and incurred a prepayment fee and swap early termination fee of $1.8 million as part of the repayment, of which $525,000 is the Company's share.

On March 19, 2015, the Company entered into a purchase and sale agreement to sell Hillsboro I-V located in Ft. Lauderdale, Florida for a gross sale price of $22.0 million. The Company expects to close the sale during the second quarter of 2015, subject to customary closing conditions, and recognize a gain on sale of real estate. As of March 31, 2015, the Company recorded assets held for sale and liabilities held for sale related to this property of $18.3 million and $702,000, respectively.

On March 20, 2015, the Company entered into a purchase and sale agreement to sell City Centre located in Jackson, Mississippi for a gross sale price of $6.2 million. The Company expects to close the sale during the fourth quarter of 2015, subject to customary closing conditions. As of March 31, 2015, the Company recorded assets held for sale and liabilities held for sale related to this property of $6.9 million and $349,000, respectively. As a result, the Company recognized an impairment loss on real estate of $1.0 million during the three months ended March 31, 2015.