OTES PAYABLE

The following table summarizes the terms of notes payable outstanding at December 31, 2013 and 2012 ($ in thousands):



Description	Interest Rate	Maturity	2013		2012
Post Oak Central mortgage note (see discussion below)	4.26%	2020	$	188,310	$	—
The American Cancer Society Center mortgage note	6.45%	2017	132,714		134,243
Promenade mortgage note (see discussion below)	4.27%	2022	113,573		—
191 Peachtree Tower mortgage note (interest only until May 1, 2016) (see discussion below)	3.35%	2018	100,000		100,000
Credit Facility, unsecured (see discussion below)	1.67%	2016	40,075		—
Meridian Mark Plaza mortgage note	6.00%	2020	25,813		26,194
The Points at Waterview mortgage note	5.66%	2016	15,139		15,651
Mahan Village LLC construction facility	1.82%	2014	14,470		13,027
Terminus 100 mortgage note	5.25%	—	—		136,123
Callaway Gardens mortgage note (see discussion below)	4.13%	—	—		172
			$	630,094	$	425,410

Credit Facility and Construction 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%.

Under the Credit Facility, 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, 2013, 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 available borrowing capacity under the Credit Facility was $308.9 million at December 31, 2013, and the Credit Facility is recourse to the Company.

The Company has 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 1.82%. 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.

Other Debt Information

In December 2013, the Company returned the land that collateralized the Callaway Gardens mortgage note and cancelled the mortgage note. The Company has no further obligations under the Callaway Gardens mortgage note. In September 2013, the Company entered into a $188.8 million non-recourse mortgage note payable secured by Post Oak Central, a 1.3 million square foot office complex in Houston, Texas. The interest rate is fixed at 4.26% and the maturity date is October 1, 2020. In September 2013, the Company also entered into a $114.0 million non-recourse mortgage note payable secured by Promenade, a 777,000 square foot office building in Atlanta, Georgia. The interest rate is fixed at 4.27% and the maturity date is October 1, 2022. 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 5 for further details.

In April 2012, the Company prepaid the 100/200 North Point Center East mortgage note in full, without penalty. 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.

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 $592.8 million were pledged as security on the $575.5 million mortgage notes payable. As of December 31, 2013, the weighted average maturity of the Company’s consolidated debt was 5.6 years.

At December 31, 2013 and 2012, the estimated fair value of the Company’s notes payable was $654.1 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 December 31, 2013 and 2012. 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, 2013, 2012, and 2011, interest was recorded as follows (in thousands):



	2013			2012			2011
Total interest incurred	$	22,227		$	25,570		$	27,277
Interest capitalized	(518		)	(1,637		)	(600		)
Total interest expense	$	21,709		$	23,933		$	26,677

Debt Maturities

The aggregate maturities of the Company’s debt at December 31, 2013 are as follows (in thousands):



2014	$	14,470
2015	—
2016	55,214
2017	132,714
2018	100,000
Thereafter	327,696
	$	630,094