Investment in Unconsolidated Joint Ventures

In addition to the 35 office properties included in the consolidated financial statements, the Company was also invested in three unconsolidated joint ventures as of December 31, 2015. Accordingly, the assets and liabilities of the joint ventures are not included on the Company's consolidated balance sheet at December 31, 2015. Information relating to these unconsolidated joint ventures is summarized below (in thousands, except ownership percentages):



		Parkway's	December 31,
Joint Venture Entity	Location	Ownership%	2015		2014
US Airways Building Tenancy in Common	Phoenix, AZ	74.58%	$	38,472	$	39,760
7000 Central Park JV LLC ("7000 Central Park")	Atlanta, GA	40.00%	120		15,790
Tryon Place, LLC	Charlotte, NC	14.80%	1,000		—
			$	39,592	$	55,550

US Airways Building Tenancy in Common

On June 3, 2013, the Company purchased a 74.6% interest in the US Airways Building, an office building located in the Tempe submarket of Phoenix, Arizona, for a purchase price of $41.8 million. US Airways owns the remaining 25.4% interest in the building. This office building is adjacent to the Company's Hayden Ferry Lakeside and Tempe Gateway assets and shares a parking garage with Tempe Gateway. The property is the headquarters for US Airways, which has leased 100% of the building through April 2024. US Airways has a termination option on December 31, 2021 with 12 months' prior written notice. At closing, the Company issued a $13.9 million first mortgage loan to the US Airways Building Tenancy in Common, which is secured by the US Airways Building. The mortgage loan has a fixed interest rate of 3.0% and matures on December 31, 2016. As of December 31, 2015 and 2014, the balance of the mortgage loan was $13.1 million and $13.4 million, respectively. Because the Company acts as both the lender and the borrower for this mortgage loan, its share of the mortgage loan is not reflected on the Company's consolidated balance sheets. As of December 31, 2015 and 2014, the balance of the Company's mortgage loan receivable was $3.3 million and $3.4 million, respectively.

7000 Central Park

On November 5, 2013, the Company and its joint venture partner foreclosed and took ownership of 7000 Central Park, an office building located in the Central Perimeter of Atlanta, Georgia. The Company previously acquired a 40% common equity interest in a mortgage note secured by the asset for approximately $45.0 million, comprised of an investment of approximately $37.0 million for a preferred equity interest in the joint venture that acquired the note and an investment of approximately $8.0 million for a 40% common equity interest. On December 13, 2013, the Company and its joint venture partner placed secured financing on the asset in the amount of $30.0 million, the net proceeds of which were used to repay a portion of the Company’s initial preferred equity investment, reducing the preferred equity interest to approximately $7.6 million. The loan has a floating interest rate based on the one-month LIBOR rate plus a spread of 180 basis points, which represents an initial aggregate interest rate of 1.97%. The joint venture also purchased an interest rate hedge that caps LIBOR at 1.75% through December 2016 for the full amount of the loan. The loan has a maturity date of December 2016. On November 6, 2015, the Company and its joint venture partner sold 7000 Central Park for a gross sale price of $85.3 million. The joint venture recognized a gain on the sale of 7000 Central Park of approximately $30.5 million, and the Company recognized a gain on the sale of approximately $9.7 million during the year ended December 31, 2015.

Tryon Place, LLC

On December 23, 2015, the Company entered into a joint venture agreement with a third party investor for the purpose of exploring a development opportunity in Charlotte, North Carolina. The Company's investment in this joint venture was $1.0 million as of December 31, 2015.

PKY/CalSTRS Austin, LLC

On December 19, 2013, in connection with the Company's merger transactions with Thomas Properties Group, Inc. ("TPGI") (such transactions, the "Mergers"), the Company acquired TPGI's interest in PKY/CalSTRS Austin, LLC (the "Austin Joint Venture"). 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%. The Austin Joint Venture owned the following properties: San Jacinto Center; Frost Bank Tower; One Congress Plaza; One American Center; and 300 West 6th Street. The cost of the Austin Joint Venture was adjusted to recognize the Company’s interest in the Austin Joint Venture’s earnings or losses. The difference between (a) the Company’s ownership percentage in the Austin Joint Venture multiplied by its earnings and (b) the amount of the Company’s equity in earnings of the Austin Joint Venture as reflected in the financial statements relates to the amortization or accretion of purchase accounting adjustments made at the time of the Mergers.

On January 24, 2014, pursuant to a put right held by Madison, the Company purchased Madison’s approximately 17% interest in the CalSTRS 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%.

On November 17, 2014, the Company terminated the Austin Joint Venture. As part of the agreement, the Company acquired CalSTRS' 60% interest in San Jacinto Center and One Congress Plaza, resulting in 100% ownership of two assets, and transferred the Company's 40% interest in Frost Bank Tower, 300 West 6th Street and One American Center to CalSTRS. In connection with this transaction, the Company received net proceeds of approximately $43.6 million from CalSTRS and recognized a $52.8 million gain in 2014.

The following table summarizes the balance sheets of the unconsolidated joint ventures at December 31, 2015 excludes Tryon Place, LLC (in thousands):



	US Airways Building		7000 Central Park (1)
Cash	$	138	$	421
Real estate, net	46,087		—
Intangible assets, net	2,265		—
Receivables and other assets	3,472		41
Total assets	$	51,962	$	462

Mortgage debt	$	13,105	$	—
Other liabilities	381		85
Partners' equity	38,476		377
Total liabilities & partners' equity	$	51,962	$	462

(1) The joint venture sold its only asset on November 6, 2015.

The following table summarizes the income statements of the unconsolidated joint ventures for the year ended December 31, 2015, excludes Tryon Place, LLC (in thousands):



	US Airways Building			7000 Central Park (1)
Revenues	$	4,504		$	6,840
Operating expenses	(8		)	(3,376		)
Depreciation and amortization	(2,089		)	(3,911		)
Operating income (loss) before other income and expenses	2,407			(447		)
Net gains on sale of real estate	—			30,478
Loss on extinguishment of debt	—			(172		)
Interest expense	(404		)	(533		)
Loan cost amortization	—			(720		)
Net income	$	2,003		$	28,606

(1) The joint venture sold its only asset on November 6, 2015.

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



	US Airways Building		7000 Central Park
Cash	$	146	$	1,218
Restricted cash	—		269
Real estate, net	47,632		48,532
Intangible assets, net	5,078		4,157
Receivables and other assets	824		2,099
Total assets	$	53,680	$	56,275

Mortgage debt	$	13,441	$	30,000
Other liabilities	370		1,561
Partners' equity	39,869		24,714
Total liabilities & partners' equity	$	53,680	$	56,275

The following table summarizes the income statements of the unconsolidated joint ventures for the year ended December 31, 2014 (in thousands):



	US Airways Building			7000 Central Park			Austin Joint Venture
Revenues	$	4,504		$	7,430		$	86,548
Operating expenses	(3		)	(3,856		)	(36,467		)
Depreciation and amortization	(2,089		)	(4,352		)	(32,877		)
Operating income (loss) before other income and expenses	2,412			(778		)	17,204
Interest expense	(413		)	(593		)	(33,671		)
Loan cost amortization	—			(176		)	565
Other expenses	—			—			(1		)
Net income (loss)	$	1,999		$	(1,547	)	$	(15,903	)