Investment in Office Properties and Parking Properties

6 Months Ended

Jun. 30, 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 June 30, 2015 are 42 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 June 30,					Six Months Ended June 30,
	2015		2014			2015		2014
Revenues	$	126,905	$	114,634		$	246,960	$	222,725
Net income (loss) attributable to common stockholders	$	14,132	$	(9,106	)	$	21,454	$	2,032
Basic net income (loss) attributable to common stockholders per share	$	0.13	$	(0.09	)	$	0.19	$	0.02
Diluted net income (loss) attributable to common stockholders per share	$	0.13	$	(0.09	)	$	0.19	$	0.02

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 $117,000 in continuing operations during the six months ended June 30, 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 six months ended June 30, 2015.

On April 8, 2015, Parkway Properties Office Fund II L.P. ("Fund II") sold Two Ravinia Drive, an office property located in Atlanta, Georgia, for a gross sale price of $78.0 million, and recognized a gain of approximately $29.0 million in continuing operations during the six months ended June 30, 2015, of which $8.7 million was the Company's share. For a discussion of Fund II's paydown of the mortgage debt secured by Two Ravinia Drive, see "Note 5 – Capital and Financing Transactions – Mortgage Notes Payable".

On May 8, 2015, the Company sold 400 North Belt, an office property located in Houston, Texas, for a gross sale price of $10.2 million, and recognized a loss of approximately $1.2 million in continuing operations during the six months ended June 30, 2015.

On May 13, 2015, the Company sold Peachtree Dunwoody, an office property located in Atlanta, Georgia, for a gross sale price of $53.9 million, and recognized a gain of approximately $14.4 million in continuing operations during the six months ended June 30, 2015.

On June 5, 2015, the Company sold Hillsboro I-IV and V, office properties located in Ft. Lauderdale, Florida, for a gross sale price of $22.0 million and recognized a gain of approximately $2.5 million in continuing operations during the six months ended June 30, 2015.

On June 12, 2015, the Company sold Riverplace South, an office property located in Jacksonville, Florida, for a gross sale price of $9.0 million, and recognized a gain of approximately $429,000 in continuing operations during the six months ended June 30, 2015.

Properties Held for Sale

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 June 30, 2015, the Company recorded assets held for sale and liabilities held for sale related to this property of $6.2 million and $420,000, respectively. The Company recognized an impairment loss on real estate of $1.0 million during the six months ended June 30, 2015.

On May 22, 2015, the Company entered into a purchase and sale agreement to sell Westshore Corporate Center and Cypress Center I-III, office properties located in Tampa, Florida, and Cypress Center IV, a parcel of land also located in Tampa, Florida, for a gross sale price of $66.0 million. As of June 30, 2015, the Company recorded assets held for sale and liabilities held for sale related to these properties of $45.1 million and $1.8 million, respectively. The Company sold the properties on July 7, 2015 and expects to record a gain on sale of real estate during the third quarter of 2015.

Impairment

During the three months ended June 30, 2015, utilizing Level 2 fair value inputs, including its purchase and sale agreement dated July 24, 2015, the Company determined the carrying value of 550 Greens Parkway in Houston, Texas, an asset held for use, was not recoverable. As a result, the Company recognized an impairment loss on real estate of $4.4 million for the difference between carrying value and fair value. See "Note 13 —Subsequent Events."