Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

As of December 31, 2013 and 2012, Piedmont owned interests in the following unconsolidated joint ventures (in thousands):



Name of Joint Venture		Properties Held by Joint Venture	Piedmont’s Approximate Ownership Percentage		Net Book Value
					2013		2012
Fund XIII and REIT Joint Venture		8560 Upland Drive Two Park Center	72	%	$	14,122	$	18,814
Fund XII and REIT Joint Venture	⁽¹⁾	4685 Investment Drive 5301 Maryland Way	55	%	—		15,813
Fund XI, XII and REIT Joint Venture	⁽¹⁾	2020 W. 89th Street	57	%	—		2,599
					$	14,122	$	37,226

⁽¹⁾

On August 12, 2013, Piedmont purchased all of the remaining interests in three office properties previously held through these two unconsolidated joint ventures for approximately $14.7 million in cash, representing the estimated fair value of the respective property, less Piedmont's existing investment in the respective unconsolidated joint ventures. Such estimated fair value was derived by reference to a credible, unrelated third-party offer and verified using discounted cash flow analysis. Under the terms of the respective joint venture agreements, Piedmont exercised its dissenter's right to buy out each of its co-venturers' interests based upon the terms of the third-party offer. The $0.9 million difference between the fair value of the properties acquired and the sum of Piedmont's previously recorded book value in investment in unconsolidated joint ventures plus cash consideration paid for the interests was recorded as a loss on consolidation in Piedmont's consolidated statement of operations for the year ended December 31, 2013.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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