NOTES PAYABLE

The following table summarizes the terms and amounts of the Company’s notes payable at March 31, 2013 and December 31, 2012 ($ in thousands):



Description	Interest Rate		Maturity	March 31, 2013		December 31, 2012
The American Cancer Society Center mortgage note	6.45	%	2017	133,840		134,243
191 Peachtree Tower mortgage note (interest only until May 1, 2016)	3.35	%	2018	100,000		100,000
Credit Facility, unsecured	1.70	%	2016	55,000		—
Meridian Mark Plaza mortgage note	6.00	%	2020	26,101		26,194
The Points at Waterview mortgage note	5.66	%	2016	15,526		15,651
Mahan Village construction facility	1.85	%	2014	14,191		13,027
Callaway Gardens	4.13	%	2013	174		172
Terminus 100 mortgage note (see discussion below)	5.25	%	2023	—		136,123
				$	344,832	$	425,410

Other Debt Activity

In February 2013, the Company effectively sold 50% of its interest in Terminus 100 to a third party. Based upon the ownership and management structure of the joint venture that owns Terminus 100 after these transactions, the Company accounts for its investment in this entity under the equity method. Therefore, the Terminus 100 mortgage note is no longer consolidated. See note 7 for further details.

Fair Value

At March 31, 2013 and December 31, 2012, the aggregate estimated fair values of the Company's notes payable were $364.8 million and $456.0 million, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at those respective dates. 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.

Other Information

For the three months ended March 31, 2013 and 2012, interest expense was as follows (in thousands):



	Three Months Ended March 31,
	2013			2012
Total interest incurred	$	5,036		$	6,694
Interest capitalized	(101		)	(426		)
Total interest expense	$	4,935		$	6,268

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.