PROPERTY TRANSACTIONS

Held for Sale

Assets and significant liabilities, if any, of held for sale properties, as defined, are required to be separately categorized on the balance sheet.

The following properties were held for sale in 2014 or 2013, respectively:



Property	Property Type	Location	Square Feet
2014
777 Main	Office	Fort Worth, TX	980,000
Mahan Village	Retail	Tallahassee, FL	147,000
2013
Lakeshore Park Plaza	Office	Birmingham, AL	197,000
600 University Park Place	Office	Birmingham, AL	123,000

Discontinued Operations

In April 2014, the FASB issued new guidance related to the presentation of discontinued operations, which changed the accounting criteria for discontinued operations. See footnote 1 for further information. The new guidance applies to assets that are sold or meet the criteria for held for sale after the date of adoption. The Company adopted the new standard in 2014. As a result, two of the Company’s properties that became held for sale in the third quarter of 2014 (777 Main and Mahan Village) that under the previous guidance would have been considered discontinued operations are not considered discontinued operations under the new guidance.

The following properties met the criteria for discontinued operations presentation prior to the adoption of the new guidance discussed above. Accordingly, the results of operations of these properties are included in a separate section, discontinued operations, in the statements of operations for all periods presented ($ in thousands):

Property

Property Type

Location

Square Feet

Sales Price

Quarter Sold

2014

Lakeshore Park Plaza

Office

Birmingham, AL

197,000

25,000

3Q 2014

600 University Park Place

Office

Birmingham, AL

123,000

19,700

1Q 2014

2013

Tiffany Springs MarketCenter

Retail

Kansas City, MO

238,000

53,500

3Q 2013

Lakeshore Park Plaza

Office

Birmingham, AL

197,000

Held for sale

N/A

600 University Park Place

Office

Birmingham, AL

123,000

Held for sale

N/A

Inhibitex

Office

Atlanta, GA

51,000

8,300

4Q 2013

The components of discontinued operations and the gains and losses on property sales for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Income from discontinued operations:
Rental property revenues	$	601		$	2,870		$	2,923		$	8,811
Fee income	—			—			—			76
Other income	14			18			29			33
Rental property operating expenses	(260		)	(1,118		)	(1,125		)	(3,493		)
General and administrative expenses	(1		)	(15		)	(2		)	(94		)
Depreciation and amortization	—			(492		)	—			(2,590		)
Other expenses	(6		)	(6		)	(19		)	(19		)
	$	348		$	1,257		$	1,806		$	2,724

Gain on sale of discontinued operations:
Lakeshore Park Plaza	$	13,025		$	—		$	13,025		$	—
600 University Park Place	(37		)	—			6,334			—
Third party management and leasing business	—			4,531			—			4,531
Tiffany Springs MarketCenter	—			3,715			—			3,715
King Mill	—			38			—			246
Other	5			62			13			58
	$	12,993		$	8,346		$	19,372		$	8,550

Fifth Third Center Acquisition

In August 2014, the Company acquired Fifth Third Center, a 698,000 square foot Class-A office tower located in the Charlotte, North Carolina central business district. The gross purchase price for this property was $215.0 million, before adjustments for customary closing costs and other closing credits. As of September 30, 2014, the Company had incurred $328,000 in acquisition and related costs associated with this acquisition.

The following tables summarize preliminary allocations of the estimated fair values of the assets and liabilities of Fifth Third Center (in thousands):



Tangible assets:
Land and improvements	$	22,863
Building	163,649
Tenant improvements	16,781
Accounts receivable	1,014
Total tangible assets	204,307

Intangible assets:
Above-market leases	632
In-place leases	17,096
Below-market ground leases	338
Total intangible assets	18,066

Tangible Liabilities:
Accounts payable and accrued expenses	(1,026		)
Total tangible liabilities	(1,026		)

Intangible Liabilities:
Below-market leases	(9,374		)
Total intangible liabilities	(9,374		)

Total net assets acquired	$	211,973

Subsequent Event

In October 2014, the Company acquired Northpark Town Center, a 1.5 million square foot office asset located in Atlanta, Georgia. The gross purchase price for this property was $348.0 million, before adjustments for customary closing costs and other closing credits. The Company funded the purchase of Northpark Town Center with cash on hand and borrowings under its Credit Facility. As of September 30, 2014, the Company had incurred $385,000 in acquisition and related costs associated with this acquisition, and the Company expects to incur additional acquisition and related costs in the fourth quarter. Due to the limited time since the acquisition date, the initial accounting for this transaction is incomplete and, as such, the Company is unable to provide purchase price allocation disclosures.