NOTES PAYABLE

The following table summarizes the terms of notes payable outstanding at December 31, 2012 and 2011 ($ in thousands):



Description	Interest Rate	Maturity	2012		2011
Terminus 100 mortgage note	5.25%	2023	$	136,123	$	138,194
The American Cancer Society Center mortgage note	6.45%	2017	134,243		135,650
191 Peachtree Tower mortgage note (interest only until May 1, 2016) (see discussion below)	3.35%	2018	100,000		—
Meridian Mark Plaza mortgage note	6.00%	2020	26,194		26,554
The Points at Waterview mortgage note	5.66%	2016	15,651		16,135
Mahan Village LLC construction facility	1.86%	2014	13,027		1
Callaway Gardens mortgage note	4.13%	2013	172		180
Credit Facility, unsecured (see discussion below)	1.71%	2016	—		198,250
100/200 North Point Center East mortgage note (see discussion below)	5.39%	2012	—		24,478
			$	425,410	$	539,442

Credit Facility

On February 28, 2012, the Company modified its $350 million senior unsecured line of credit by entering into the Second Amended and Restated Credit Agreement (the “Credit Facility”), which replaced the Amended and Restated Credit Agreement dated August 29, 2007 (the “Old Facility"). The Credit Facility amended the Old Facility by, among other things, extending the maturity date from August 29, 2012 to February 28, 2016, with an additional one-year extension option upon certain conditions and with the payment of a fee. It also added an accordion feature, which authorized the maximum amount available to be borrowed to increase to $500 million under certain conditions and in specified increments.

The Credit Facility contains financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 2.00; a fixed charge coverage ratio of at least 1.40, increasing to 1.50 during the extension period; and maximum leverage of no more than 60%.

The Credit Facility also reduced the Company's interest rate spreads on borrowings. The Company may borrow funds at an interest rate, at its option, calculated as either (1) the current London Interbank Offered Rate (LIBOR) plus the applicable spread as detailed below or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50% or the one-month LIBOR plus 1.0% (the “Base Rate”), plus the applicable spread as detailed below. The Company also pays an annual facility fee on the total commitment under the Credit Facility. The pricing spreads and the facility fee under the Credit Facility are as follows:



Leverage Ratio	Applicable % Spread for LIBOR	Applicable % Spread for Base Rate	Annual Facility Fee %

≤ 40%	1.50%	0.50%	0.20%
>40% but ≤ 50%	1.60%	0.60%	0.25%
>50% but ≤ 55%	1.90%	0.90%	0.35%
>55% but ≤ 60%	2.10%	1.10%	0.40%

At December 31, 2012, the Credit Facility's spread over LIBOR was 1.5%. The amount that the Company may draw under the Credit Facility is a defined calculation based on the Company's unencumbered assets and other factors. The total borrowing capacity under the Credit Facility was $269.2 million at December 31, 2012, and the Credit Facility is recourse to the Company.

Other Debt Information

In March 2012, the Company entered into a $100 million mortgage note payable secured by 191 Peachtree Tower, a 1.2 million square foot office building in Atlanta, Georgia. The interest rate is 3.35% and interest-only payments are due monthly through May 1, 2016, followed by monthly principal and interest payments through October 1, 2018, the maturity date.

In September 2011, the Company entered into a construction loan agreement, secured by Mahan Village, a 147,000 square foot retail center in Tallahassee, Florida, to provide for up to $15.0 million to fund construction. Interest on the loan is LIBOR plus 1.65%, and the current interest rate is 1.86%. The loan matures September 12, 2014, and may be extended for two, one-year periods if certain conditions are met. The Company guarantees up to 25% of the construction loan, which may be eliminated after the completion of the project and the achievement of certain performance criteria.

In April 2012, the Company prepaid the 100/200 North Point Center East mortgage note in full, without penalty. In August 2011, the Company repaid the 600 University Park Place mortgage note in full upon its maturity. In July 2011, the Company prepaid, without penalty, the Lakeshore Park Plaza mortgage note. In June 2011, the Company prepaid, without penalty, the 333/555 North Point Center East mortgage note. In May 2011, the Company was released of its obligation under the Handy Road Associates, LLC mortgage note through foreclosure.

The real estate and other assets of The American Cancer Society Center (the “ACS Center”) are restricted under the ACS Center loan agreement in that they are not available to settle debts of the Company. However, provided that the ACS Center loan has not incurred any uncured event of default, as defined in the loan agreement, the cash flows from the ACS Center, after payments of debt service, operating expenses and reserves, are available for distribution to the Company.

The majority of the Company’s consolidated debt is fixed-rate long-term mortgage notes payable. Assets with depreciated carrying values of $387.7 million were pledged as security on the $425.4 million mortgage notes payable. As of December 31, 2012, the weighted average maturity of the Company’s consolidated debt was 6.7 years.

At December 31, 2012 and 2011, the estimated fair value of the Company’s notes payable was approximately $456.0 million and $568.5 million, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at December 31, 2012 and 2011. The estimate of the current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820 as the Company utilizes market rates for similar type loans from third party brokers.

For the years ended December 31, 2012, 2011 and 2010, interest was recorded as follows (in thousands):



	2012			2011			2010
Total interest incurred	$	25,570		$	28,384		$	37,180
Interest capitalized	(1,637		)	(600		)	—
Total interest expense	$	23,933		$	27,784		$	37,180

Debt Maturities

The aggregate maturities of the Company’s debt at December 31, 2012 are as follows (in thousands):



2013	$	4,775
2014	17,905
2015	5,168
2016	20,174
2017	132,696
Thereafter	244,692
	$	425,410