Investment in Unconsolidated Joint Ventures

In addition to the 42 office and parking properties included in the consolidated financial statements, the Company was also invested in two unconsolidated joint ventures with unrelated investors as of June 30, 2015. Accordingly, the assets and liabilities of the joint ventures are not included on the Company's consolidated balance sheets at June 30, 2015 and December 31, 2014. Information relating to these unconsolidated joint ventures is summarized below (dollars in thousands):



Joint Venture Entity	Location	Parkway's Ownership%	Number of Properties	Investment Balance at June 30, 2015		Investment Balance at December 31, 2014
US Airways Building Tenancy in Common ("US Airways Building")	Phoenix, AZ	74.58%	1	$	39,129	$	39,760
7000 Central Park JV LLC ("7000 Central Park")	Atlanta, GA	40.00%	1	14,592		15,790
			2	$	53,721	$	55,550

The following table summarizes the balance sheets of the unconsolidated joint ventures at June 30, 2015 (in thousands):



	US Airways Building		7000 Central Park		Total
Cash	$	144	$	1,451	$	1,595
Restricted cash	—		274		274
Real estate, net	46,859		49,017		95,876
Intangible assets, net	2,401		1,643		4,044
Receivables and other assets	3,437		4,326		7,763
Total assets	$	52,841	$	56,711	$	109,552

Mortgage debt	$	13,273	$	33,000	$	46,273
Other liabilities	379		1,871		2,250
Partners' equity	39,189		21,840		61,029
Total liabilities and partners' equity	$	52,841	$	56,711	$	109,552

The following table summarizes the balance sheets of the unconsolidated joint ventures at December 31, 2014 (in thousands):



	US Airways Building		7000 Central Park		Total
Cash	$	146	$	1,218	$	1,364
Restricted cash	—		269		269
Real estate, net	47,632		48,532		96,164
Intangible assets, net	2,537		2,695		5,232
Receivables and other assets	3,365		3,561		6,926
Total assets	$	53,680	$	56,275	$	109,955

Mortgage debt	$	13,441	$	30,000	$	43,441
Other liabilities	370		1,561		1,931
Partners' equity	39,869		24,714		64,583
Total liabilities and partners' equity	$	53,680	$	56,275	$	109,955

The following table summarizes the statements of operations of the unconsolidated joint ventures for the three months ended June 30, 2015 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture (1)		Total
Revenues	$	1,126	$	2,041		$	—	$	3,167
Operating expenses	—		949			—		949
Depreciation and amortization	522		1,142			—		1,664
Operating income (loss) before interest	604		(50		)	—		554
Interest expense	101		150			—		251
Loan cost amortization	—		41			—		41
Net income (loss)	$	503	$	(241	)	$	—	$	262

(1) The Company previously owned an indirect interest in PKY/CalSTRS Austin, LLC (the "Austin Joint Venture"), a joint venture with the California State Teachers' Retirement System ("CalSTRS"). The Company terminated the Austin Joint Venture on November 17, 2014.

The following table summarizes the statements of operations of the unconsolidated joint ventures for the six months ended June 30, 2015 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture (1)		Total
Revenues	$	2,252	$	3,882		$	—	$	6,134
Operating expenses	—		1,983			—		1,983
Depreciation and amortization	1,044		2,771			—		3,815
Operating income (loss) before interest	1,208		(872		)	—		336
Interest expense	202		298			—		500
Loan cost amortization	—		84			—		84
Net income (loss)	$	1,006	$	(1,254	)	$	—	$	(248	)

(1) The Company previously owned an indirect interest in the Austin Joint Venture. The Company terminated the Austin Joint Venture on November 17, 2014.

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



	US Airways Building		7000 Central Park			Austin Joint Venture (1)			Total
Revenues	$	1,126	$	1,921		$	24,435		$	27,482
Operating expenses	—		1,023			9,807			10,830
Depreciation and amortization	522		1,181			9,214			10,917
Operating income (loss) before interest	604		(283		)	5,414			5,735
Interest expense	103		148			9,579			9,830
Loan cost amortization	—		57			(161		)	(104		)
Other expenses	—		—			1			1
Net income (loss)	$	501	$	(488	)	$	(4,005	)	$	(3,992	)

(1) The Company previously owned an indirect interest in the Austin Joint Venture. The Company terminated the Austin Joint Venture on November 17, 2014.

The following table summarizes the statements of operations of the unconsolidated joint ventures for the six months ended June 30, 2014 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture (1)			Total
Revenues	$	2,252	$	3,769		$	48,578		$	54,599
Operating expenses	—		1,873			19,664			21,537
Depreciation and amortization	1,044		2,293			19,164			22,501
Operating income (loss) before interest	1,208		(397		)	9,750			10,561
Interest expense	207		63			19,064			19,334
Loan cost amortization	—		106			(322		)	(216		)
Other expenses	—		—			1			1
Net income (loss)	$	1,001	$	(566	)	$	(8,993	)	$	(8,558	)

(1) The Company previously owned an indirect interest in the Austin Joint Venture. The Company terminated the Austin Joint Venture on November 17, 2014.

On December 19, 2013, the Company acquired Thomas Properties Group, Inc.'s ("TPGI") interest in the Austin Joint Venture in connection with the merger transactions (the "Mergers") with TPGI. The Company and Madison International Realty ("Madison") owned a 50% interest in the joint venture with CalSTRS, of which the Company's ownership interest was 33%. On January 24, 2014, pursuant to a put right held by Madison, the Company purchased Madison’s approximately 17% interest in the Austin Joint Venture for a purchase price of approximately $41.5 million. On February 10, 2014, pursuant to an agreement entered into between CalSTRS and the Company, CalSTRS exercised an option to purchase 60% of Madison's former interest on the same terms as the Company for approximately $24.9 million. After giving effect to these transactions, the Company had a 40% interest in the CalSTRS joint venture and the Austin properties, with CalSTRS owning the remaining 60% and the Company recorded a gain on sale of real estate of approximately $6.3 million during the six months ended June 30, 2014.